India: Castor seed prices down month on month, but markets likely to recover soon

Castor seed had shown an impressive upside rally between February of 2021 and May 2022. In these months the prices had increased by nearly 75 per cent. However, the prices have reversed from the upward trend from June 2022 onwards, and when compared with the May 2022 end prices, castor seed is down nearly Rs 300 per quintal currently. The impressive upside growth between February 2021 and May 2022 was because the markets were supported by improving local demand followed by the sharp upside in oilseed prices; in addition to drop in the carry forward inventory levels. However, due to the lower crop size in 2021, the inventory is running tight currently. For the year 2021-22, India is estimated to produce approximately 1.51 million metric tons of castor seeds. This will be a decline in the production number when compared with the 2020-21 average which stood near 1.65 million tonnes. Castor seed harvesting in India is over. And as the monsoon season have started, the amount of ...