CASTOR SEED

Castor plant (Ricinus communis) is grown in arid and semi-arid regions. It is cultivated in 30 different countries on
commercial scale, of which India, China, Brazil, Russia, Thailand, Ethiopia and Philippines are major castor seed growing
countries which accounts about 88% of the world's production. In India it is a kharif crop, sowing in July-August and arrivals
from December onwards till March. Gujarat is the chief producing state, having a share of 86% of domestic production,
followed by Andhra Pradesh and Rajasthan. Bag packed of castor seed contains 75kg by weight.

CASTOR SEED VALUE CHAIN

Castor Seed Oil Export / Paints /

Lubricants

Meal Fertilizer / Export

CURRENT SCENARIO
Castor is a non-edible oilseed crop; basically a cash crop, with average 46% oil recovery. Castor seed production in India is
around 9-10 lakh MT. Castor oil (extracted from castor seed) and its derivatives have vast and varied applications in the
manufacturing of soaps, lubricants, hydraulic and brake fluids, paints, dyes, coatings, inks, cold resistant plastics, waxes and
polishes, nylon, pharmaceuticals and perfumes. Castor oil is the largest vegetable oil exported out of India. India is the
biggest exporter of castor oil holding about 70% share of the international trade in this commodity followed by China &
Brazil.
CROP CHARACTERISTICS
Castor is a perennial crop but grown as an annual for economic purpose. It is cultivated mostly in the arid and semi arid
regions in the world. It thrives in wide rage of soils and requires well distributed rainfall of 500 to 600 mm throughout the crop
period. The crop duration is 4 5 months. In India, it is sown in July / August and harvesting commences around December /
January. The seeds are then dried, de-podded, bagged and brought to the market yards of trading. The arrivals in the market
start from December onwards.

PRODUCTION SCENARIO

India is the largest producer of castor seed and castor oil in the world. India contributes about 55-60% to the world production.
China is the major importer. The other major producers od castor seed in the world are Brazil, Thailand and Angola. The
following table shows the production and acreage statistics for the major castor seed producing countries in 2005.

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CURRENT SCENARIO
Last three years, production has been constant at about 9.5 lakh MT/annum. This year production estimated to be 12-15
lakh MT/ annum. The major states producing castor in India are Gujarat, Andhra Pradesh, Rajasthan and Karnataka. The
following pie chart shows the share of the various states for the castor production in India.

More than 70% of the castor production is concentrated in the Gujarat region. The major trading centres in Gujarat are
Disa, Palanpur, Patan, Kadi, Dhanera and Sidpur. The major trading centres in Andhra Pradesh are Mahboobnagar,
Nalgonda and Rangareddi.
CASTOR PRODUCTION IN INDIA FROM 1995 - 2007
More than 70% of the castor production is concentrated in the Gujarat region. The major trading centres in Gujarat are
Disa, Palanpur, Patan, Kadi, Dhanera and Sidpur. The major trading centres in Andhra Pradesh are Mahboobnagar,
Nalgonda and Rangareddi.

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 FACTORS AFFECTING CASTOR SEED PRICES
Production and acreage variations
Monsoon and level of rainfall
Yield level in other countries
Prices of other competitive oils like hydrogenated oil, dehydrated oil, sulfated and sulfonated oil etc.
Demand of the importing countries and domestic demand.
Seasonal price variations
Carry over stocks
Development of new uses of the oil.

CONTRACT SPECIFICATIONS
Name of Commodity Castor seed
Ticker symbol CASTORSEED
Basis Ex-warehouse Deesa, exclusive of sales tax/VAT
Unit of trading 10 MT
Delivery unit 10 MT
Maximum Order Size 500 MT
Quotation/base value Rs. Per Quintal (100 kg)
Tick size Re. 0.50 (50 Paise)
Castor Seed (Gujarat small seed) with the following:
specifications:
Oil content 47% basis
Foreign matter and damaged seeds 3% basis
Moisture content 4.5 % max
Acceptable quality variations at the time of taking physicaldelivery shall be applicable as per annexure to the
contract specifications
Quantity variation +/- 2%
Delivery center Deesa (upto the radius of 50 km from the municipal limits)

Additional delivery Bhabhar, Kadi, Palanpur, Patan (upto the radius of 50 km from the municipal limits) with location wise
centres premium/discount as announced by the Exchange from time to time

Delivery Logic Compulsory Delivery

Expiry date of the contract:

Due Date/ Expiry
20th day of the delivery month If 20th happens to be a holiday, a Saturday or a Sunday then the due date shall
Date be the immediately preceding trading day of the Exchange, which is not a Saturday

Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling
off period for 15 minutes. Trade will be allowed during this cooling off period within the price band.
Price limits Thereafter, the price band would be raised by (+/-) 1% and trade will be resumed If the price hits the revised
price band (4%) again during the day, trade will only be allowed within the revised price band. No trade /
order shall be permitted during the day.

Quality variations shall be accepted with discount as under:

Oil Content:
• From 45% to 47% accepted at discount of 2:1 or part thereof,
• Below 45% rejected
Premium/Discount
Foreign matter and damaged seeds:
• From 3% to 6% accepted at discount of 1:1 or part
thereof,
• Above 6% rejected
Member level: 40,000 MT or 15 % of Market OpenInterest whichever is higher
Client level : 8,000 MT
The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange
will, on a case to case basis, decide the hedge limits. Please refer to
Position limits Circular No.NCDEX/TRADING-100/2005/219 dated October 20, 2005.
For near month contracts
The following limits would be applicable from 28 days prior to expiry date of contract
Member: Maximum of 10,000 MT or 15 % of the Market wide near month open position whichever is higher
Client: Maximum of 2,000 MT

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