Castor Oil Export May Suffer as Production Plunges by Over 21%

03-May-2025 12:09 PM

Rajkot. India's castor oil and meal exports are expected to face significant pressure in the coming months due to a sharp fall in domestic castor seed production, as estimated by the Solvent Extractors Association of India (SEA).

Key Estimates:

  • Production Drop: From 19.76 lakh tonnes (2023–24) to 15.60 lakh tonnes (2024–25) – a decline of 21%.

  • Sowing Area: Fell by 1.20 lakh hectares (12%) from 9.88 lakh ha to 8.68 lakh ha.

  • Yield Drop: From 2000 kg/ha to 1796 kg/ha.

Regional Breakdown:

  • Gujarat: Down from 15.74 to 12.26 lakh tonnes

  • Rajasthan: Down from 3.13 to 2.71 lakh tonnes

  • Andhra Pradesh & Telangana: Down from 0.80 to 0.54 lakh tonnes

Cause of Decline:

  • Late sowing and re-sowing due to erratic monsoon.

  • Unfavorable weather conditions in major growing belts of Gujarat and Rajasthan.

  • Lower productivity across all key states.

Global Implications:

India, with a near-monopoly in castor oil and meal exports, may lose some competitive edge:

  • Exporters may face supply constraints.

  • Global buyers could look for alternative sources or face price hikes.

  • Prices of castor oil and derivatives may rise in the international market.

Domestic Outlook:

  • Harvesting has nearly concluded across major producing states.

  • Supplies in mandis will likely remain tight.

  • Local processors and exporters may face raw material shortages, squeezing margins.

Latest News