Cambodia hopes Castor Oil will boost their Economic

Phnom Penh - Cambodian officials Tuesday said they were aiming for a sweet financial future fuelled by castor oil, after negotiating with a Singaporean company to establish significant castor seed plantations in central Cambodia.

Chay Sareth, governor of central Pursat Province, said his cabinet had reached agreement with Van der Horst Jatropha Oil Plantation Pty Ltd, which would provide local people with seeds and technical training before buying back the resulting crop 'at a fair price.'

How much land would be put under castor oil production was dependent on how well the plant performed in Cambodian conditions, but initial estimates indicated at least 1,000 hectares would be dedicated to the endeavour, he said.

'We are looking at this as a way to boost employment,' Sareth said. 'But we have not yet signed a final contract.'

Some analysts have predicted a continued rise in world demand for the oil as a bio-diesel fuel source.

India currently supplies more than 85 per cent of world demand, but markets are expecting a shortfall after Indian farmers began to shift to cotton production instead.

There may also be an exciting medical future ahead for 'jatropha curcas.' Various parts of the plant are currently being medically tested for a range of uses including as a treatment for diseases ranging from malaria to fevers and even tumors.

Experts say mature plants can be expected to produce nearly 2,000 litres of oil per hectare per year.