Last year the domestic output of castorseed was down to 6.5 lakh tonnes from about 7.5 lakh tonnes in the previous year. The revised estimate translated the castor oil production into 2.75 lakh tons.

Inspite higher production estimates, the price level is likely to remain more or less stable without any major volatility in the upward direction, opined Jagu Tanna, chairman Jamnadaas Madhavji International Ltd, a leading export house dealing in castor oil.

Giving reason for the expected stability he said that European buyers are not showing interest beyond $ 750 per tonne. The international buyers had bought Indian castor in the range of $ 660/760 last year which had witnessed lower production, he added.

Last year, major crop failure in Brazil, the second largest supplier of castor oil had lead to an acute shortage in the global market andhad spiralled an upward movement of this oil.

The shortage had exerted immense pressure from global buyers on India, which is the largest producer of castorseeds in the world.