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Kapaskhali (Cotton Seed Oil Cake) is traded in MCX by the name of Kapaskhali and in NCDEX, it is traded as Cocudcakl. Expiry rate of kapaskhali is based on Kadi mandi in Gujarat while Cocudcakl’s expiry price is based on Akola in Maharashtra. It is a crop whose production depends on rains. It requires lesser irrigation facilities.
After the crop ripens, farmers pluck it and sell it to Ginning Mills where cotton seed cake and cotton are separated with the help of modern machines. Around 33% cotton and 66% cotton seed cake is obtained from 100 kg produce. In another processing, expellers extract around 11-12% oil from cotton seed and the remains are called only cake. Solvent plants extract ~18% oil from the seed. It is to be noted that this cake contains around 24% protein but this protein content varies in the processing activities of solvent plants. Solvent plants extract around 38-40% oil from cotton seed. And the cake has high protein content of nearly 17-18%.
Kapaskhalli is cottonseed extraction/meal. It is a byproduct of the cottonseed industry. Cottonseed was a raw agricultural product, which was once largely wasted. Now it is being converted into food for people; feed for livestock; fertilizer and mulch for plants; fiber for furniture padding; and cellulose for a wide range of products from explosives to computer chip boards.
Cottonseed is the second most commonly produced oilseed in the world just slightly ahead of soy. However, in 2003-04 rapeseed/mustard has marginally overtaken this seed.
The global production of cottonseed is around 35 million tons in the recent years. The major producers of cotton are also the major producers of cottonseed. China, USA, India, Pakistan, Uzbekistan and Brazil are the major producers globally.
Cottonseed is a traditional oilseed of India. It is estimated that cottonseed production will be around 33% of the cotton production in bales. Around 80% of the seed is marketable surplus and arrives in the market for being crushed to oil. The remaining is used as seed is fed to cattle.
India's cotton output and along with it the cottonseed, meal and oil output varies considerably from year to year in response to the vagaries of weather and pest attacks.
The protein content of the scientifically produced meal is 40-42% against 20-22% in the traditionally processed meal. The cattle feed manufacturers prefer this meal as it contains lesser amount of gossypol, which if consumed in larger amounts is a poison for cattle.
However, in India mainly undecorticated meal is largely produced. Several associations are promoting the production of decorticated cake in India and the production of this is expected to increase in the country.
India used to be a major exporter of cottonseed extraction around two decades ago. However, the demand for other oil meals like soy meal has lowered the cottonseed demand globally. In addition, the low availability of decorticated meal in India has also been a major reason for the fall in exports.
The major importers of Indian cottonseed meal (undecorticated) used to be Thailand. India in 2002-03 exported only 50 tons of decorticated cottonseed meal. In 2003-04, too there have been no significant exports. India does not import cottonseed meal.
Akola, Parbhani, Nagpur, Yeotmal are the major trading centers where cottonseed from the cotton procured by the Maharashtra State Cooperative Cotton Growers Marketing Federation is auctioned off.