Supply, demand, and production of castor oil in India after the pandemic situation

India rules the global castor-oil exports and is followed by China and Brazil in the second position. The castor seeds are produced and cultivated for commercial purposes. The entire process of castor oil production takes almost three-fourth of the year. The castor seeds are sown in the months of July and August. The crop is harvested in January and February. It is only after the harvesting process, the castor seeds are used to extract oil, and the manufacturing of products takes place.

Owing to the corona pandemic this year, the time that is crucial to the extraction and production of castor-based products, went through a difficult phase. There are substantial changes in the purchase pattern, demand, and supply of the castor oil and its derivatives across the globe due to the corona pandemic outbreak. Let us explore what happened with castor oil product’s demand and supply while the world was battling with the pandemic.

Leading the Castor Market

India has favorable natural resources and weather conditions for the cultivation of castor crops. Such conditions are not available in many other countries abroad. Gujarat is one state in India, where the production of castor oil takes place to cater to the needs of people across the globe.

According to the data made available by the government, the production of castor seeds and castor oil increases by 10 percent almost every year, and the credit for this growth goes to the labor-intensive cultivation methods and the subtropical climate conditions of Gujarat. Hence, castor oil manufacturers in India, rule the world with its supply of a wide variety of castor wax and organic cold pressed castor oil.

Indian Market Combats Covid-19

The overall demand for castor oil saw a great dip this year, at the time when it was supposed to be at the peak. After the nation went under lockdown from 25th March 2020, the demand and supply chain of products made from castor oil had hit the rock bottom. It was virtually a standstill like condition. But later when some relaxation was given to a few business segments from 20th April 2020, the situation started getting better, if not normal.

India’s castor oil producers, who are majorly located in Western Gujarat, had ceased working due to lockdown. Another problem was that the incoming ships, loaded with vessels of oil, had to be quarantined and sanitized. Hence, empty containers were not available. Additional to these issues, the man labor, who worked on the dock and other staff were not available.

The supply of the stated products was severely affected but later in April’20, as per the guidelines of the government, all the inventory was containerized.

After a thorough sanitization process, it was transported to the ports from where it was exported. After this, following the orders of MHA, the processing plants of castor oil manufacturers in India were shut down again till the next order was to be exported.

Serving the domestic customers was not as big an issue as serving the overseas customers for these manufacturers. India exports castor seeds to almost 80 percent of the world. But at the time of the pandemic, the overall demand had also come down to almost 40 percent of the total. But since 20th April 2020, after the re-opening of restrictive business segments and availability of vessels, the world opened its door to get castor oil imported from India. And the situation is quite a under control now.

What keeps Castor Oil and its Products in High Demand?

Castor oil is a secret agent and also a storehouse of benefits related to beauty and health. There are multiple advantages and uses of castor oil. It has a high content of ricinoleic acid, proteins, vitamin E, Omega 6, and 9. One of the major utilities is in the industrial zone where it is used in the production of paints, varnishes, lubricants, adhesive, cosmetics, and many other things. Its derivatives are also used in the production of many other chemicals useful in industries.

Hydrogenation of castor oil enhances the quality, taste, and odor of the castor oil and this is responsible for the upsurge in the demand of this oil and its derivatives. The manufacturers of castor oil in collaboration with many other companies are now accentuating over innovative and advances techniques to create more superior products of castor oil. They are also investing heavily in the research and development to keep pace with the increasing competition in the market.

One of the major reasons for the sudden upsurge of demand and supply of castor oil is the Biodiesel. It is considered the best alternative to petrol or diesel as it is a biodegradable and renewable fuel. When castor oil is converted into fatty acid methyl esters or FAME, it produces biodiesel. In the future, the production of biodiesel will strengthen and the demand would be extensive. All this together accounts for the high demand for castor oil and India will be the biggest supplier for the same.

Not only this, castor oil is one of the most propitious edible oil and is also used in the formulations of bioplastics. It is also useful in making hydraulics and brake fluids. The by-products of the castor oil are also used as fertilizers.

Castor oil is easily available online and in the retail market too. And this makes the supply of its products go on without any hazards or complications.

Now, with such a myriad of benefits, who wouldn’t like to import and purchase castor oil and its derivatives. Pandemic or no pandemic! Lockdown or no lockdown! The demand and supply of castor oil may have got hit badly but it will surely recover rapidly.