by Liao Yifan

BEIJING, Mar. 26 (China Economic Net) - On March 25, Pakistan's Roomi Agriculture Company and China's Zibo Academy of Agricultural Sciences signed a Cooperation Framework Agreement focused on the castor industry. The agreement outlines their collaboration in scientific breeding, planting technology, deep processing, and marketing of castor products.

Castor seed cultivation is highly sensitive to environmental factors, particularly water availability. Under the agreement, a Shandong-based agricultural company will oversee seed production, provide technical support, develop digital cultivation technologies, and research and manufacture digital water-fertilizer equipment. Additionally, they will design digital models for the pre-planting, mid-planting, and post-harvest stages.

Zibo Academy of Agricultural Sciences has developed castor germplasm resources that are resistant to herbicides and tolerant of salt and alkali through field hybridization, biotechnology, and molecular breeding. The academy will oversee variety selection, cultivation techniques, and provide support for industry chain information.

Roomi Agriculture will promote large-scale castor bean cultivation on its own farms as well as on partner farms.

According to World Bank data, India accounts for over 80% of global castor oil production, playing a crucial role in the supply chain. Data from China's General Administration of Customs indicates that in 2024, China imported castor oil and chemically unmodified derivatives valued at RMB 3.75 billion, with India supplying RMB 3.74 billion of that total.

The demand for castor oil is anticipated to remain strong, especially in the cosmetics and pharmaceutical industries. This reliance renders global markets susceptible to price fluctuations caused by supply constraints, according to industry experts.

Industry experts note that innovations in breeding and improved irrigation techniques could alleviate supply constraints; however, castor oil prices are likely to remain elevated due to persistent demand outpacing supply. Consequently, companies are exploring alternative growing regions beyond India to reduce their reliance on a single-source supply chain.

The climate and soil conditions in Pakistan, especially in the rain-fed Pothwar region, are highly conducive to castor cultivation, presenting significant potential for expansion, according to Ghulam Shabbir, an expert from Pir Mehr Ali Shah Arid Agriculture University.

In 2023, Pakistan exported castor seeds valued at USD 2.69 million, making it the country's 660th largest export product. The primary buyers were China, which imported USD 2.69 million worth, and the UAE, which imported USD 2.03 million.