Cotton Cake

Cotton Cake:
When kapas is ginned the lint and seed gets separated. When cotton seed is crushed for extraction of oil, the by-product which remains after extraction of oil is called Cotton Seed Oil Cake or Kapasia Khali in hindi. This is mainly used as cattle feed. Cotton seed oil cake fresh production starts after the cotton arrivals in different regions of India

Major production states of cotton seed oil cake in India are Gujarat, Maharashtra, Andhra Pradesh & Punjab and major consumption states are Rajasthan, Delhi, Punjab, & Haryana. The total annual production figure in India is about 65-75 lakh MT. Cotton seed oil cake has 6% oil content in general and greater the oil% in cotton seed oil cake better is the quality. Sound jute bags are used for its packing. Bag packed of cotton seed oil cake contains 50 kg by weight.

Cotton seed oil cake is majorly used as cattle feed since it has around 25% protein content in it. Consumption of cotton seed oil cake by cattle does add viscosity to the milk. As consumption of milk will increase in India year on year, the market of cotton seed oil cake will also grow. Given that cotton seed oil cake have considerable price volatility and the domestic demand have also increased between years. Exchange traded cotton seed oil cake futures are ideal for price risk management needs of the Oil millers, Stockists, Dairies. Those with no natural exposure to cotton seed oil cake trade can also benefit by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in cotton seed oil cake futures.