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Wednesday, Apr 30, 2025

China and Pakistan Collaborate to Enhance Castor Industry

China and Pakistan Collaborate to Enhance Castor Industry

Agreement formalizes cooperation on castor seed cultivation and processing technology between Roomi Agriculture and Zibo Academy.
On March 25, 2024, Pakistan's Roomi Agriculture Company signed a Cooperation Framework Agreement with China's Zibo Academy of Agricultural Sciences, focusing on the castor industry.

The agreement aims to enhance collaboration in scientific breeding, planting technology, deep processing, and the marketing of castor products.

Castor seed cultivation is notably sensitive to environmental factors, particularly water availability.

Under the new partnership, a Shandong-based agricultural company will take on roles including seed production oversight, technical support, the development of digital cultivation technologies, and the research and manufacturing of digital water-fertilizer equipment.

Furthermore, the agreement encompasses the design of digital models for various stages of cultivation: pre-planting, mid-planting, and post-harvest.

The Zibo Academy of Agricultural Sciences has made advancements in developing castor germplasm resources that are resistant to herbicides and tolerant of challenging soil conditions, such as salinity and alkalinity.

Their contributions to the collaboration will include variety selection and the sharing of cultivation techniques, alongside providing valuable industry chain information.

Roomi Agriculture is set to promote large-scale cultivation of castor beans across its own farms and those of its partners, indicating a significant push for growth in this sector.

Global production data shows that India dominates the castor oil market, accounting for over 80% of the supply.

According to China's General Administration of Customs, in 2024, China imported castor oil and its unmodified derivatives amounting to RMB 3.75 billion, with India being the primary supplier at RMB 3.74 billion.

Persistent demand is expected to keep castor oil prices high, particularly in the cosmetics and pharmaceutical industries.

This high demand creates vulnerabilities in global markets, which may experience price fluctuations due to supply constraints as highlighted by industry analysts.

Experts suggest that innovations in agricultural practices, particularly in breeding and irrigation techniques, could help mitigate these supply issues.

Nevertheless, it is anticipated that castor oil prices will remain elevated as demand continues to outstrip supply.

As a result, companies are increasingly investigating alternative cultivation regions outside of India to diversify their supply chains.

Pakistan's climatic and soil conditions, notably in the rain-fed Pothwar region, are regarded as favorable for castor cultivation, showcasing a significant opportunity for growth, as noted by Ghulam Shabbir, an expert from Pir Mehr Ali Shah Arid Agriculture University.

In 2023, Pakistan's exports of castor seeds amounted to USD 2.69 million, marking it as the country's 660th largest export product.

Key markets included China, which imported goods valued at USD 2.69 million, and the UAE, importing USD 2.03 million.
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