Your eyes and hands in India · Est. 2019 · Replies within one working day

Why is India the main supplier of castor derivatives?

India grows about 85% of the world's castor seed, mostly in Gujarat, and has built a crushing and derivatives industry around that crop over several decades.

· 3 min read · Creston & Co

India is the main supplier because it grows most of the world's castor seed and has built a processing industry around it. A 2022 study by the Agro-Economic Research Centre at Sardar Patel University put India at about 85% of world castor seed production, and Gujarat at about 85% of India's output in 2020-21.

The same study says India supplies roughly 85 to 90% of the world's castor oil and derivatives. Figures move from year to year with the crop, so treat them as scale, not as exact shares.

Why the crop is concentrated

  • Castor grows well on Gujarat's semi-arid soils and tolerates heat and low rainfall better than many crops.
  • Gujarat farmers have high castor yields by world standards, helped by hybrid seed and irrigation.
  • Seed markets, crushers and traders have grown up together, so seed moves quickly to processors.
  • Few other countries grow castor at scale, partly because the seed contains ricin and needs careful handling.

Why processing followed

Once the seed and oil were in one place, it made sense to make derivatives there too. Gujarat also has the chemical estates, hydrogen supply, caustic soda and ports that derivative plants need. Read what castor oil derivatives are made in Gujarat for the product range.

China is the other large processor. It imports much of its castor oil from India and makes derivatives such as sebacic acid. That means many buyers compare Indian and Chinese offers for the same products.

What it means for buyers

Concentration is a strength and a risk. You get a deep supply base, but one region's monsoon affects the whole world's supply. A poor crop raises seed costs for every plant at once.

To manage this, buy from plants with secure seed or oil supply and agree how quotes will move with feedstock. Our guide on how castor seed prices affect derivative prices explains the link.

Because so much supply comes from one region, you should plan for a few specific risks:

  • A weak or late monsoon in Gujarat cuts the crop and raises costs across every plant.
  • Changes in India's export or trade policy can affect castor oil and derivatives.
  • Pollution board action in a chemical estate can pause production at several plants at once.
  • Port congestion or freight disruption can delay cargo even when production is on time.

How to check a supplier's position

Not every Gujarat seller is a processor. Many are traders who buy from crushers or derivative plants. Ask whether the plant crushes seed, where its oil comes from and how much stock it carries. A plant with its own crushing or long-term oil supply is better placed when the crop is poor.

An audit is the surest way to confirm this. Our guide on what a factory audit should contain lists what to look for on site.

Next step

We find and audit castor derivative plants in Gujarat and supervise production and loading. Book a free sourcing review to start.

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