Growth and Instability of Castor Oil Exports from India

Abstract

India is the world’s largest producer and exporter of castor seed oil and exports around 80 per cent of its total castor oil production. India has limited domestic consumption with less than 10 per cent production going for a value addition that too is limited to base levels. The main consuming segments are paints (45%), soaps (30%), and lubricants (20%). (Anon., 2020). Though India is a dominant player in the world market, it is just a price taker and not a price setter due to its poor infrastructure. However, it has the capability to improve the exports of the derivatives of castor and overcome this limitation (Gowri Shanker, 2013). Therefore, a study on the growth and stability of castor oil export from India will indicate the expansion or contraction in castor oil export and the degree of risk involved in this business.