InvestorQ : Can you explain how castor seeds as an agriculture commodity work?
simran Kaur made post

Can you explain how castor seeds as an agriculture commodity work?

Answer
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Mitali Bhutta answered.
2 years ago


India has a near monopoly in the production of castor seeds in the world accounting for nearly 88% of the world production. However, the consumption of castor seeds in India is not so high as a result of which a bulk of the castor seeds produced in India get exported to other countries, typically in the form of castor oil or castor meal. Castor seeds have applications in a variety of industries including paints, surfactants, cosmetics, medical formulations and perfumes. It is also used to extract castor oil which has applications across a variety of industries. The largest producer of castor seeds in India is Gujarat which accounts for 80% of the annual castor seed output. Since castor seeds require arid soil to grow, nearly 95% of the castor seeds are produced in the states of Gujarat and Rajasthan.

Castor is a Kharif crop and is sown in the months of July and August. The output starts coming from December and extends all the way to March. Apart from India which accounts for 88% of the global castor seeds production, China and Brazil are the other significant producers in the world. The major consumers of castor seeds in the world are China, the US, EU and Japan. Like most Kharif crops, the castor crop also depends extensively on weather conditions as well as its resistance to pest attacks and diseases. Since India is predominantly an export driven castor seeds economy, a weak rupee has typically suited India.