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The cotton seed oil expelled mechanically from the cotton seed through the screw and press is non-edible oil which is called Cottonseed wash oil. The cottonseed wash oil undergoes intensive treatment after extraction to reduce the level of gossypol found in cottonseed wash oil, the consumption of which may produce undesirable side-effects. Refined cotton seed oil is used mainly for edible purposes such as salad and cooking oils, shortening, margarine and to a lesser extent in the packing of fish and cured meat. Low grade oil is used in the manufacture of soaps, lubricants and protective coatings.

Cottonseed oil is extracted from cottonseed, which carries around 18% oil content. Cottonseed oil is estimated to contribute nearly a fifth of the global vegetable oil production. Gujarat produces an estimated 0.36 million tonnes of cottonseed oil and stands first in cotton seed oil production in India.

 
Cottonseed oil production (million tonns):
India
Gujarat
Maharashtra
Andhra Pradesh
Years
cotton seed
cotton seed oil
cotton seed
cotton seed oil
cotton seed
cotton seed oil
cotton seed
cotton seed oil

2006-07

8.84

1.06

3.25

0.39

1.58

0.19

1.14

0.14

2007-08

9.95

1.19

3.54

0.42

1.96

0.23

1.45

0.17

2008-09

9.16

1.10

2.84

0.34

1.96

0.23

1.67

0.20

2009-10 (E)

9.31

1.12

3.00

0.36

2.12

0.25

1.52

0.18

Source: Cotton association of India
 
The four largest producing countries of cottonseed oil in 2008/09 (crop year) accounted for about the two thirds of world production (three of them are developing countries). Their relative shares were:
  • China: 32%
  • India: 24%
  • Turkey: 3%
  • United States: 8%

Traditionally, cottonseed and Oil is sold through weekly auctions as well as through active cash market in major producing centres. Cottonseed oil market stays largely as an unorganized sector with a slew of operators dominating the scene. Prices tend to fall in October-January considered as peak season of arrivals of fresh supply. Fluctuations in cotton output will have a direct bearing on the price of cottonseed oil. The price of other oils would also influence cottonseed oil.