Sunday, 16 June 2013

Guar Gum Cultivation In India and Its future

Rates of Gaur Seed and Guar gum are going down day by day. Even it was started to decrease from a peak of  INR 32,000/ 100 Kg in last year, but the current concern is that the rates were stable in between INR 9000-12000/ 100 Kg . After the listing no major increase in the rate was seen. It started to going down  and reached up to a level of 6000 / 100 Kg. Since last two day I am looking a very small improvement in the rate of Guar seed and Guar Gum.

If we analyse the current condition of Guar seed it is as follows.

  • This time the monsoon is on time with a prediction of good rainfall. 
  • The farmers are having huge stocks, 
  • New crop is suppose to arrive after four- five month
  • There is no any improvement in the forward ( future rates)  trading.
  • Manufacturers are not getting long term contracts from the buyers 
  • There is also arrival of the guar seed of summer crop from some other states.
 Now the question is how long this downfall will continue.  Following factors will decide the rate of guar seed in future.
  • Exploration of New Oil and Natural Gas Fields.
  • Increase in the rate of the Crude oil.
  • Stability in the middle east. 
  • New area under Guar crop cultivation.
  • Actual rainfall during the Kharif season
  • Successful crop cycle of Guar crop with out any heavy damage.
As guar seed is grown in a particular type of Agro and Climatic belt of India and Pakistan, so there are more chances or risk of failure or success of the crop.

Even the Oil and natural Gas industry looking the stability in the rates of Guar Seed. The stability in the rates of guar seeds will help the entire Industry and all the stake holders.

This is year there is expectation of  increase of guar cultivation area in the normal rainfall condition and stable rates in last 7-8 month except the last one month. The state Govts are also promoting the cultivation of Guar. 

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