Castor Oil Crash: Groundnut Windfall Drives 3-Year Price Plunge in Gujarat
Castor Oil
Castor Oil : In the entire country in peanut production, Gujarat, which is No. 1 and produces more than 46 percent of the country’s peanuts, has been getting peanut oil at a reasonable price after three years of selling expensive peanut oil to people in the past years.
In the Rajkot oil market, after a decline of Rs. 70 in a week, a 15 kg can reached a historic low yesterday, today after a correction, deals were made at a price of Rs. 2275- 2325. Wholesaler sources said that peanut oil has come to such a low price after AD 2022. Earlier, prices had reached Rs. 3000. And in January of this year, too, prices were around Rs. 2500. In which there has been a further decrease of Rs. 200.
Due to extensive rains in Gujarat in the last monsoon, when the Kharif agricultural season ended on 14-10-2024, groundnut seeds were planted in 19.08 lakh hectares in the state. Following which, according to the official second progressive estimate in 2024-25, a record-breaking production of 50.72 lakh tonnes of groundnut has been recorded in the state. According to Apeda, in the entire country, in 2023-24, the No. 1 state Gujarat’s share in the production of 101.80 lakh tonnes of groundnut was 45.62 percent and about 75 percent of the total production of the state is produced in only 11 districts of Saurashtra.
Groundnut Glut Crushes Prices: Castor Oil, Singe Oil See Sharp Drops Across Gujarat –
The government had purchased more than 12 lakh tonnes of groundnuts at the support price of around Rs. 1356 per maund, which is the highest purchase ever. However, this purchase is twenty-five percent of the total production. Thus, more than 37 lakh tonnes of groundnuts are still lying with the farmers, which are still being dumped in the yards for sale. The price of groundnuts in the yards is Rs. 850 to 1250 per maund for farmers. Last year, the local sale of singe Castor Oil , which reached Rs. 3000, has decreased to only 10-15 percent of the total edible oils, but now it has increased to 25 to 30 percent.
Sale in old cans has been resumed in the oil market of Saurashtra and a can of this oil is Rs. 50 cheaper than the routine price. It is worth mentioning that the price of 15 kg of oil in a new can of oil is maximum Rs. 2325 while some millers sell 15 liter cans which are priced at Rs. 180 less. Today in the oil market, cottonseed oil is priced at Rs. 2240 against Rs. 2325, i.e. only Rs. 85, and branded cottonseed Castor Oil is being sold at almost the same price in retail.
Castor Oil , Groundnut & Oil Market Summary – Gujarat (2024-25)
| Category | Details |
|---|---|
| Groundnut Production (2024-25) | 50.72 lakh tonnes (record-breaking) |
| Gujarat’s Share in India | 45.62% (No. 1 in country) |
| Groundnut Area (Kharif 2024) | 19.08 lakh hectares |
| Govt. Procurement | 12+ lakh tonnes at Rs. 1356/maund (25% of total production) |
| Remaining with Farmers | 37+ lakh tonnes still unsold |
| Market Price of Groundnuts | Rs. 850 – 1250 per maund |
Oil Price Trends – Rajkot & Saurashtra Market :
| Oil Type | Earlier Price (Max) | Current Price (Range) | Price Drop |
|---|---|---|---|
| Peanut Oil (15 kg) | Rs. 3000 (peak) | Rs. 2275 – 2325 | ↓ Rs. 675 – 725 since 2022 |
| Peanut Oil (Jan 2025) | Rs. 2500 | ↓ Rs. 200 since Jan | |
| Old Can Price | Rs. 50 cheaper than new | Rs. ~2275 in old can | |
| 15L Can (Millers) | Rs. 180 less than new can | Approx. Rs. 2145 | |
| Cottonseed Oil | Rs. 2325 | Rs. 2240 | ↓ Rs. 85 |
| Branded Cottonseed | ~Rs. 2240 | Nearly same as loose oil |
Singe Oil Market Share in Edible Oils : Castor Oil
| Period | Market Share |
|---|---|
| Last Year | 10–15% |
| Current | 25–30% |
