“On NCDEX, the guar seed prices have increased by 12% in the last one month to trade at Rs 4,630/quintal, while guar gum prices have jumped almost 20% to trade at Rs 7,663/quintal,” said Ritesh Sahu, analysts with the SMC Research.
Guar gum is the main product of guar seed processing. It is used in extraction of crude oil and shale gas.
As prices of soyabean, which is used as the main protein source in poultry feed, have been ruling at record-high levels, demand for guar meal has grown as its protein level is equivalent to that of soyabean meal.
“Demand from feed industry has increased due to record high prices of soyabean. The carryover stocks of guar seed have been reducing,” said Sahu.
According to the government data, export of guar gum from January 2021 till April 2021 was higher by 7.75 % when compared to the same period of previous year.
Along with growing demand from the domestic as well as export markets, concerns about the next crop are also weighing on prices of guar seed complex.
As on August 2, sowing of guar had been completed on 16 lakh hectares in Rajasthan compared with 15.92 lakh hectares in the year-ago year.
“Guar seed prices are rising also due to the concerns about the kharif crop. Rainfall in western Rajasthan, including the districts of Bikaner, Badmer and Jaisalmer, has not been sufficient for the growth of the crop, which has led to concerns about the potential shortage in production,” said Dilip Sarda, a guar gum manufacturer from Rajasthan.
Traders expect prices to rise over the next few months. “Guar prices are expected to rise in coming weeks and expected to reach Rs 5,000-5,500 per quintal due to increasing animal and poultry feed demand. Moreover, demand for gum is also improving in the food industry, as source of thickener, binder, and gelling agent,” said Sahu.
Along with growing demand from the domestic as well as export markets, concerns about the next crop are also weighing on prices of guar seed complex.
As on August 2, sowing of guar had been completed on 16 lakh hectares in Rajasthan compared with 15.92 lakh hectares in the year-ago year.
“Guar seed prices are rising also due to the concerns about the kharif crop. Rainfall in western Rajasthan, including the districts of Bikaner, Badmer and Jaisalmer, has not been sufficient for the growth of the crop, which has led to concerns about the potential shortage in production,” said Dilip Sarda, a guar gum manufacturer from Rajasthan.
Traders expect prices to rise over the next few months. “Guar prices are expected to rise in coming weeks and expected to reach Rs 5,000-5,500 per quintal due to increasing animal and poultry feed demand. Moreover, demand for gum is also improving in the food industry, as source of thickener, binder, and gelling agent,” said Sahu.
