Sunday, 27 March 2016

Guar Korma the real profit maker or solid base of Guar seed and Guar Gum Industry

Though the markets were closed yesterday, but traders/ processor/ agent were trading & negotiating Guar Korma at Rs 2500 /100 Kg and Guar Churi at Rs 2100/100Kg. This is highest rate for Guar Korma ever traded. In this lean period of guar gum rate, Guar korma /churi has emerged as major support for Guar industry. Demand of animal feed protein is increasing day by day. The situation will remain same in coming next two three month up to next availability of green fodder in Rainy season. If we calculate the cost of raw material for Guar Korma then the margin in around nothing. Guar industry has become self sustain industry even at lowest price of Guar Gum due to support from Guar Korma prices.

guar korma is used as protein source in cattle feed industry
At cattle farm with 2000 Cattle


Guar gum prices has adversely affected with the falling crude price. Entire guar seed & guar gum industry has come under pressure of low crude oil prices in international market. Oil prices are recovering slowly and slowly. But it will have to come out from the level of USD 70-75/ barrel to give actual support to Guar Gum Industry. After this level fracking activities will reactivate globally and new activities of oil exploration will start.

Diversification of guar product use is very important for long term sustainability. Animal feed protein is best industry which can given long term sustainability to guar seed and guar gum industry. Guar Korma and Guar Churi is the major of protein which is used in cattle feed and other animal / bird feed. There is up 50-52 % protein in Guar Korma. Still it is a competitive source of protein.

Global feed demand is increasing. Production of food is adversely affected with political crises in the world. If there is minor upward movement in guar gum demand then guar seed prices may cross the level of Rs 5000/ 100 Kg. Technically guar seed rate must be at Rs 3400/ 100 Kg but physically guar seed is available at Rs 3000 /100 Kg in local market. In Coming one month Guar seed prices will settle toward this correction level. Guar Gum exporters is improving slowly and slowly.  Guar gum exporters  or supplier are getting contract of guar gum at Rs 5400/100 Kg. 

Guar Korma is by-product of Guar gum split processing industry. There is around 70% recovery of Guar protein from guar seed while processing to guar gum processing including Guar Korma and Guar Churi.

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