BDS Cstro Seed

8/6/2019 BDS Cstro Seed

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Castor Seed Co-operative MovementA New Outlook & New Vision in Co-operative Movement

from North Meridian Finance corporation .. Mumbai


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Seasonality

Castor is aperennialcrop butgrown as anannualfor economicpurpose.

Castorgrows well in tropicalconditions. Itgrows best inheat andhumidity.

Thecropduration is 4-5 months.

The arrivals in themarket startfrom Januaryonwards tillmid ofMay.


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Seasonality2

InIndia, it is sown in July/August andharvesting

commences around December/January.

The seeds are thendried, de-podded, baggedand brought to themarket yardsfor trading.

The arrivals in themarket startfrom December

onwards.


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Seasonality3


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Processing of Castro Seeds

Castor seedharvested from field is dried till the

pods open.

Seeds arehulled byusing de-hullers or byhandto remove the seed from thepod.

Seed contains about 50 percent of oil by weight.

These seeds are cleaned, cooked and driedprior

to extraction.


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Processing of castor seeds.2

The first stage of oil extraction ispre-pressing,using ahighpressure continuous screwpress called the expeller.

Extracted oil is filtered, and thematerialremoved from the oil is fed back into the streamalong with freshmaterial.

Material finally discharged from thepress, calledcake, contains 8 to 10 percent oil.


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Processing of castor seeds3

The first stage of oil extraction isprepressing,using ahighpressure continuous screwpress called the expeller.

Extracted oil is filtered, and thematerialremoved from the oil is fed back into the streamalong with freshmaterial.

Material finally discharged from thepress, calledcake, contains 8 to 10 percent oil. It is crushedinto a coarsemeal, and subjected to solventextraction withhexane orheptane.


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Process flow chart


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Uses

Castoroilanditsderivativesareextensivelyusedinthemanufactureof

Surfactants

Specialty soaps

Coatings

Lubricants Plastizers

Paperinks


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International Scenario

Global castorseedproduction is almoststagnantaround 10-14 lakh tonnes in thepast 7-8 years.

Output touched all timehigh of15 lakh tonnesduring 2005 asproductionhassignificantlyincreased inIndia.

Yieldhasdrasticallydeclinedduring 2006 andreflected in total output.


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International Scenario2

India is largestproducer ofcastorseed andconstitutes about 64% of totalglobal

production.

Any changes in area andyield inIndiahas

major impact onglobal castor output.


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International Scenario3


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Global castor oil consumption

AlthoughIndia produces major percentage ofcastor oil, itsdomestic consumption is limited.China is the major consumer ofcastor oil, whichconsumes about one third of total production.

Other major consumers are Europe, India andBrazil.


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Global castor oil consumption


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Indian Scenario

Castorseedproductionhasgradually increasedinthepastfewyears. India recordedhighestoutputofnearly 10 lakhtonnes during 2005

with increasedyields.

Area is almoststagnant inthepastfewyears,however, increasedyields ofcastorseed

contributedtohigher output.

Castorseedhas recordedhighestyield of1216kgperhectare inpreviousyear.


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Indian Scenario2

Thesufficient rainfall and irrigationsourcesespecially in Gujarathave improvedtheyield inIndia.

Cultivation ofcastorseedmainly confinedtowesternstateslike Gujaratand Rajasthan bothtogether contributes 87% tototalproduction.

Gujarathasthelargestshare inIndiaproductionwith 71% followed by Rajasthan (16%).


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Indian Scenario3


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Indian Scenario4


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Export-castorseedoil byIndia

Indiaislargestexporterofcastorseedoilasit

islargestproduceroftheseed.

Annuallyitexportsabout1.8-2.0 lakhtonnesofcastorseedoilandreceiveshugeforeignearnings.

Exportvolumeshavemarginallydeclinedinthepastthreeyears evenasoutputhasincreasedduringsameperiod.


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Export-castorseedoil byIndia2

Appreciating Rupeehasaffectedthe exportquantities, however, higher exportpricesprovidedmore earningsintermsofvalue.

India exportsmorethan 80% oftotalcastorseedoutputintheformofoil.

Onlythrough Mumbaiand Kandlaportsand2007-08 datatill March 2008


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Castorseedmealisanothermajorderivativeofcastorseed exported byIndia.

Thisoilmeal exportshaveincreased 4-5 timesinthepastfiveyears.

India exportedrecordoilmealof3,30,475

tonnesduring 2007-08 upfrom 65,550 tonnesshippedin 2003-04.


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Current production scenario

Gujarat islargest producer ofcastor seed inIndia and othermajor producers are Rajasthanand Andhra Pradesh.

It contributes about 70% of total domesticoutput. Output is estimated around 9.09 lakhtonnes in 2007-08, up by 16% from previousyear.

Yieldhas been increasing significantly alongwith area especially in Gujarathas resulted intobumperharvest of the croplastyear.


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Current production scenario2

Area under castor seedhas increased bywhooping 26% in 2007-08 to 3.54 lakhhectares.

Gujarathashighestyieldwith 1838 kgs perhectares.

Higher rainfalllastyearmainly inwestern partsof thecountry and improved irrigationfacilities in

these twomajor statesled to sharp rise inoutput.

Gujarathas about 20 castor seed processingmills andmajorhubfor castor seed industry.


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Current production scenario..3


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Market influencing factors

Sowing andprogress of south-westmonsoon inwesternparts of the country

Production of castor seed inIndia and also inChina and Brazil

Arrivalspattern in spotmarkets

Exportdemand forIndian castor oil and exchangerate

Prices of other edible oils


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Price analysis

Castor seedpriceshave rallied by about87% inthe lasttwo years andtouched alltimehighofRs.525 per quintal. Priceswere almost rangebound around Rs.250-350 priorto 2006. Bullishtrend startedfrom secondhalfof2006 andprices never saw back.

Strong exportdemandfor castoroil and bullish

tone inotheroils including crudeoil, soyoil andmustardoil supportedthe sharp rise inprices.Soyoilpriceshavegained by around 85% andcrudeoilpricesmovedup bymorethan 70% in

the sameperiod.


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Price analysis2


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Factors to be watched out

Production during 2007-08 has been estimated

at 9.09 lakh tonnesincreased by 16%comparedtolastyear

Gujaratislargestproducer withproduction of6.5 lakh tonnesin 2007-08 andmajor hubforcastor seedindustry

Carryforward stocks werenegligible due tolowoutputlastyear


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Factors to be watched out2

India has exported 1.7 lakh tonnes ofcastorseed oilin 2007-08 compared to 1.9 lakhtonnesinlastyear (till March 2008)

Prices havegained by 46% inlast oneyearExport demand remain strong especiallyfromChina

Export earnings have affected by appreciatingRupeein thelast oneyear

Exportprices are quoting around $1400 per MT(FOB)


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Price outlook

Currentlypricesare quotingaround Rs.500-520per quintal inmajormandis ofGujaratandRajasthan. Arrivalsare likely todeclinefromMaymonth onwardsfrom currently level of

90000 bags(75 kgs).

Pricesare likely to remainfirm inshort termandmay touch Rs.580-600 levels inshort term tomedium termdue to lowarrivalsandhigher

exports.

However, pricesare likely to comedownsharplyfrom Rs.600 levels in long termassowing begin

from June-July.


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Price outlook2

Pricesmay comedown towards Rs.450 levels bySeptember October.

Recommended buying June NCDEX contractaround Rs.525-535 for target ofRs.580-600(keepstop loss below Rs.490 ifmarketfails tomove up).

Sellingpositions can be takenaround Rs.580-600 (farmonth contracts) for long termholdingasprices turns bearishaftersowingstarts.


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New Ventures : Contract Farming

It is an initiative wherein, educating thefarmers about betterfarming techniques.

Assisting thefarmers in sourcing goodquality ofhybrid seeds, fertilizers andfinancefrom the banks.

The area under contractfarming isconsistently increasing, and over thelast18 months,


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Programes & Schemes : Agri-implements Subsidies


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Programes & Schemes : Agri-implements Subsidies2


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Title : Assistance to National Agriculture Cooperative

Marketing Federation of India. (NAFED)

Type : Central Sector

Objectives : To strengthen financial position of NAFED for

increasing its business activities in marketing ofagricultural produce through state federations,

primary cooperative marketing societies etc. for

providing better prices to growers.

Salient features : This scheme also enables NAFED to undertake price

support operations, market interventions,

commercial purchases. It helps NAFED to play aneffective role in providing market support both

internally as well as promotion of exports.

Pattern of

Assistance :

100% per cent loan to the NCDC for passing on the

same to the NAFED.


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Title Assistance of National Cooperative

Federations.

Type Central Sector

Objective Financial Assistance to National Cooperative

Federation for promotion and development of

research & survey of projects.

Salient features Promotion of Technical & Consultancy

Services, Intensification of field studies,

research and statistical activities,

improvement of infrastructural

facilities/office buildings/ premises.

Pattern ofassistance

90% grant is provided by the CentralGovernment and remaining 10% is borne by

the Federation.

Eligibility Federation comprising by and large of

cooperative for weaker sections or

predominantly with promotional role

suffering from the constraints of inadequate

resources.


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Offering Castor seeds Exports

Specification of CastorSeed

1.Foreign Matter-2.0%

2.Damaged DiscoloredSeeds-5.0%

3.Immature, Shriveled and Dead seeds-2.0%

4.Broken seeds-0.5%

5.Other Oil seeds-0.5%

6.WeevilledSeeds-1.0%

7. Moisture-5.0% max

8. Oilcontent: between 48-49%


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Major Trading Centres

Themajorcastor seedmarkets in

Gujarat -

Rajkot, Ahmedabad,

Gondal, Gadwal,

Bhabar, Disa, Kadi

Andhra Pradesh

Jedcherla

Yemignoor.


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MarketInfluencing Factors

Variations in castor see d domestic acreagebased onyield and price realization,

Crop development based onmonsoonprogress

in key growing regions

Chinese and Brazilian crop size Comparativeprice with other vegetable oils in the domesticmarket,

Upcountry demand of castor oil from themajorcities, Export demand of castor oil fro m US,Europe and Japan


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MarketInfluencing Factors2

The castor seed price tends to fir m up duringtheplantingperiod and easesdownduring theharvesting period. Prices ten d to show inter-seasonalvariation of almost Rs 200 - Rs350 per

quintal.

Castor seed growers an d crushers hoard thecommodity before selling in expectation ofbetter prices. Castor oil too can be ke pt in

containerswithout spoilage for longperiod.


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GuidinglightofIndia'sCo-

operativemovement

IndiaislandofCo-operatives.

NCDCreported 5,00,000 Co-operatives

withmembershipof207 millionpeople.

43.7% of AgricultureCredit

60.5% ofSugarproductioncapacity

20% ofSpinningmillcapacity 30% ofFertilizermarket


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GuidinglightofIndia'sCo-operativemovement2

Co-operativepossess Rs.1,16,555 millionasShareCapital

ValueofAsst& WorkingCapital Rs.13,21,246.63million

WorkingCapital Rs.16,53,128 million


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GuidinglightofIndia'sCo-operativemovement3

Share in National Economy

Rural NetWork (VillagesCovered) 100%

AgricultureCreditDistributed 46.3%

Sugar Produced (7,062 mn. tones) 54.95%

Retail Far PriceShop (1,25,200) 28%

Milkprocurementtomarketablesurplus 10%

Handloom 55%

Storage Facilities (Village PACS) 62.5%


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PrinciplesofCo-operation

Voluntary & Open Membership

DemocraticmemberControl

Member Economic Participation Autonomy &Independence

Education Training &Information

Co-operationamongCo-operatives

ConcernforCommunity


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ProblemsofCo-operatives

Poorperformance & Lossoffinancialviabilities LackofProfessionalmanagement Excessivegovernmentcontrol & Political

interference. Lackofgoodleadership Lossoffocusontheprimeobjective &growing

alienation Poor boardmanagementrelation

Lackofperformance based RewardSystemandpoorwork environment

Unlimitedand Limited Liability


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Castor Seed Co-operativeMovement Why?

Must beingIndias highest share inworldmarket

Attaining highest yield by technology orientedCastrofarming.

Co-ordinatingwithfarmers to organise themforbetter earningwith bigger pool to strengthenthem incompetitiveglobal marketfor sustainedgrowth.

AdditionalIncome apartfrom other agri produceand milk.

Professional management


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Castor Seed Co-operativeMovement Advantage

Pooling together higheryield, betterbargaining power, morecost effective,better technology, more earnings etc.

Sustained growthwithlong termperspective

Quantitative & Qualitative productionforbetter marketability in organised sector.

Better market being varied application

Dealingwithcorporatefor markethencedealingwith organised market


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Castor Seed Co-operativeMovement Feasibility

Comprehensiveusage ofgovernment machineryunder theco-operative sector.

Pooling ofvariousgovernment incentive

collectively to betteruse and rapidgrowth. Creating better share inworld marketwith

organised export. Collective bargaining. Collectivefunding tocrate bettercapital

structure to strengthen thefinancial base. Better scope ofDiversification andgrowth


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Castor Seed Co-operativeMovement Financial Matrix

Collective bulk capital creation Collectiveusage ofgovernment subsidiesfor

cost effectiveness.

Availability ofself-employed entrepreneurhumanworkforce. Associatewith international co-operative

organistionwith involvementforeign equity toorganise internationally

Exposer to international commodity market Adding better value to GDP ofnation Creating Social entrepreneurship


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MedicinalProperties and Benefits

A poultice ofcastor seeds can beappliedwithgratifyingresultstogoutyandrheumaticswellings. Adecoctionof

therootsofcastorplantwithcarbonateofpotashisusefulinthetreatmentoflumbago, rheumatismandsciatica. Apasteofthekernelwithoutthe embryo,

boiledinmilk, isalsogivenasamedicineintheseconditions.


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MedicinalProperties andBenefits2

Castor oil is aharmless purgative. Itsimply passes out after completing itspurgative action, making the patient feel

amild irritation in the anus at that time.Administering of castor oil as a purgativeisvery simple. About30 to 60 grams ofpure odorless castor oil isgiven orally

with 250 to375 grams of lukewarmmilk.It acts just after anhour.


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A poultice of castor leaves isusefulas an external application of boilsand swellings. Coatedwith some

bland oil such as coconut oil andheated, thehot leaves can beapplied overguinea-worm sores toextract theworms. A poultice of

castor seeds is also applied toscrofulous sores and boils due totuberculosis of lymph nodes.


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Castor oilmassaged over the body, before bath,keeps the skinhealthy and imparts sound sleep.Such an oil bathmay be taken once in aweek.

Applying castor oil overhand and feet before

going to bedkeeps them soft and similarly overthe eyebrows and eyelasheskeeps themwell-

groomed

Ifused regularly ashair oil, ithelps thegrowthof thehair and cure dandruff.

di i l i d


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Precautions

Repeateduseofcastoroilasalaxativeshouldbeavoidedasitcausessecondaryconstipation,

thatis, recurrenceoftheconditionaftercure.Personssufferingfromkidneyinfectionsshouldnottakecastoroilasapurgative. Itshouldalsonotbeusedwhenthereisabdominalpainorintestinalinfectionssuchasappendicitis,

enteritisorinflammationofthesmallintestineandperitonitis. Largedosesofcastoroilduringthe earlymonthsofpregnancymaycauseabortion.


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CONCLUSION

Righttimetoturnaround

Withchanging economicscenarioandIndiasglobalstatus envisagingbetter exportmarket.

InvolvingglobalparticipationinCo-operativemovementtowith

enhancedagritechnologyandfinancefortheverticalgrowth.


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Thanks.

Foranyassistanceincontributingtothismovementcontactus ensurethesuccessofthismovementNMFCisalwayswithyoualltheway.

Thanks.

BDS Cstro Seed

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