One of the key challenges faced in the castor industry is the price and volatility challenges.
This blog post looks briefly at why this challenge exists and how it affects the industry.
The main reasons for price volatility are:
- One country dominating production, and one state dominating within the country
- Drastic changes in area under cultivation owing to unorganized nature of farming
- Significant changes in seed output owing to natural causes
- Depleting stocks or surplus stock owing to carry forward
- Fluctuating demand from export markets – the cause of this is to a certain extent the previous point
Price and Supply volatility can significantly affect the market growth and potential of castor industry as shown below.