New Delhi, Oct 2 (IANS) The castor seeds prices have tumbled 22 per cent on the National Commodity and Derivatives Exchange (NCDEX), the biggest agriculture futures market, in just 12 days, according to a report on Wednesday.
Apart from default by some brokers and traders in delivery of contract, the crash has also come on the expectations of a bumper crop after heavy rainfall in the second half of the monsoon season, which triggered short selling. But traders and brokers who accumulated stock in July after a late and uneven start to rains were stuck, it said.
The castor oilseed’s price on the NCDEX for contracts for delivery in October fell by 5.96 per cent (Rs 294) on Tuesday. The price came down to Rs 4,700 per quintal for October and for contracts for delivery for November declined by Rs 300 to Rs 4,700 per quintal.
On September 19, the contract for delivery for October closed at Rs 5,966 per quintal. Thus, for October, total fall recorded was Rs 1,328 or 22.25 per cent.
In the last six trading sessions, the prices crashed by more than Rs 1,000 per quintal.
Vice-President of Angel Broking Anuj Gupta said, “Cartelisation is one of the biggest reasons for the castor seeds price crash.” The demand had also declined, apparently, due to trade tension between China and America, he added.
Meanwhile, the NCDEX said in a statement, the contract delivery for October would start on October 11 instead of October 3.
According to Union Agriculture Ministry, the area under castor seeds cultivation this year is 9.330 lakh hectares, 7 per cent more than the previous year.
According to data, the export of castor seeds in August was 20,922 tonnes, a fall of 37 per cent from the previous year’s 33.437 tonnes. Decline in demand and prices has left the castor seeds farmers worried.
India is the biggest producer of castor seeds, used in various industrial units.