Guar Seed arrival in local market has increased in comparison to last year

 Guar arrival in local market is increased in comparison to last year. In the first 17 days of October it is just double than last year. We are expecting that new crop will saturate the market. As production of other kharif crops are not so good due to the delayed rainfall. Guar is only cash crop with farmer. The next two three months are peak arrival period.

Some farmers were holding it in starting in expectation of good rate. There are no chances of any spike rise in rate. Due to Diwali the market was closed, so farmer will start to carry the new harvest right now. Ariival will increase in coming days.

In Haryana arrival of guar seed has decreased in comparison to last year but it has increased from multiple time from Rajasthan and Gujarat. 

Guar seed arrival up to 16th October from major producing states 
State/ Year
Quantity in MT.

Guar Gum and Guar Seed has removed from MCX ( Multi Commodity Exchange of India Limited)

MCX ( Multi Commodity Exchange of India Limited)  has got approval from FMC to remove guar from exchange. The trader were not actively  taking part in trading of guar gum on MCX.

There was no trading on MCX since a long time. Investor didn't took any interest in guar trading after De-listing in 2012 by FMC. MCX tried to attract investors but it was useless. Guar is traded on NCDEX and MCX . Now NCDEX will be only exchange where guar will be traded. MCX has stopped trading of guar from last Tuesday 21st October,2014 .

Natural gas & Crude oil price sliding and Its impact on Indian Guar Gum Industry

Crude oil has reached it lowest level since 2011. and Natural gas is also going down. It is expected that Natural Gas may go up due to winter in Europe. But it is clear that energy market is running out of money. There are two possibilities behind this free fall world economy is not doing well specially US, EU and China. Either  countries are over representing the development or there is over supply of crude oil in market. We can say that the availability of crude oil is more than the expectation.

Natural gas & Crude oil price sliding and Its impact on Indian Guar Gum Industry  

Expect  winter there is no any favorable news for Oil and Natural Gas Industry . The conflict in west Asia is going long . There is no possibility of early settlement. Energy market is running out of money. No one is ready to invest in energy market. If it is right then money drain condition will continue up to next 6 months.

1 Month Natural Gas Prices - Natural Gas Price Chart
Natural gas During Last one Month.

There is some news that US is planning to export its Natural Gas to Europe during this winter to counter Russian Gas. The activity of Natural Gas export is going to large level.  Europe depends on 30% on Russian Gas.

The low rate of Crude oil and Natural gas can change the number in budget of Russia , Saudi Arabia and other countries.There is also news that Libyan oil has again reached to Global Crude oil market. 

1 Month Crude Oil Prices - Crude Oil Price Chart
( Crude oil Price During Last one Month )

Indian Guar Gum industry is totally depend on Natural Gas prices. It is a major concern that 60% Indian guar gum powder is used in Oil and Natural Gas Industry.  If there will be some recovery in Natural gas prices then the drilling and fracking activity will start again on large level. The expectation of oversupply of Guar seed is also another major concern in guar gum Rates. This time if major supply period for Guar Seed.

In today's scenario Guar Seed rate may touch the level of 3500-3700/100 Kg during next three- four months. Hop that it will not touch. This is also festival season so there may be requirement of  cash for farmers. Guar is a all time cash liquid commodity. There are chances that guar seed supply will saturate the Guar Seed Market. Farmer is emerging as major stockist for Guar Seed.

Guar Gum Seed Cultivation and Indian Guar Gum Industry

The Gavar/Guar/Guwar/Guvar bean or cluster bean (Cyamopsis tetragonoloba) is an annual legume. Guar beans have a large endosperm that contains galactomannan gum, a substance that forms a gel in water.

Guar Farmer at Guar Farm : Guar Gum Seed Cultivation and Indian Guar Gum Industry

This is commonly known as guar gum and is used in dairy products like ice cream and as a stabilizer in cheese and cold-meat processing. Derivatives of guar gum are also used in industrial applications, such as the paper and textile industry, ore flotation, the manufacture of explosives and hydraulic fracturing (fracking) of oil and gas formations.

India is the largest producer of Guar Gum, meeting over 80% of the world’s demand. It's a supply chain riddled with a high degree of complexity and opaqueness and a market fraught with uncertainty which has left the Guar Gum industry in India fragmented, unorganized, and underdeveloped.  

Mature Guar Crop : Guar Gum Seed Cultivation and Indian Guar Gum Industry

Yet India strives to meet much of the world’s demand for Guar Gum. The industry complexities notwithstanding, the country’s ability to meet this ever-surging demand is closely linked to the rural farmers’ random and indivdual decision to choose Guar over other competing crops such as cotton for cultivation.

Guar production is concentrated around three western states in India – Rajasthan, Haryana, and Gujarat

These states account for 97% of the total Guar seed produced in India, with Rajasthan alone accounting for 80% of that production. Rajasthan is also home to most of the over 120 Guar Gum processors in the country. Much of the Guar Gum production is exported via seaports along western India. Currently, there is a less-than-adequate infrastructure at these ports, with frequent congestion and long wait times which have resulted in shipment delays.

Guar International - 2014 Exploring possibilities of Guar Business Development

I attended Guar International-2014, an unique event dedicated to Gar and Guar Gum from cultivation to End Use. Expert of different subject put their views and made a very clear picture in all horizon like

  • Current demand of Guar Gum
  • Export potential and opportunities in Guar business.
  • Market of Hydrocolliods and opportunities with guar to replace other.
  • Demand and future of Shale Gas and Farcking
  • New opportunities for Guar Gum demand
  • Requirement and current activities in R&D in Guar
  • Current stagnancy in Guar Gum Business
  • Value addition of Guar Gum
  • Development in Guar Cultivation
  • Biotechnological approach in Crop improvement
  • Current crop Condition
  • Role of Supply Chain Management in Guar Business
  • Warehousing and Commodity finance opportunities
  • Prediction of rate during  remaining
  • Factor for price prediction.
  • Platform Role of Commodity exchange for Guar Business 

Guar International-2014 ( An event dedicated to guar seed and guar  Industry)

Inaugural message from Agriculture Minister of Rajasthan- Shri Prabhu Lal Saini was motivation reagent. Message . Message of Mr Sameer Shah on the role and involvement of NCDEX in Guar business stabilization was very supporting for the industry. Directly or indirectly NCDEX is playing a major role in re-innovation indian guar gum industry. Indian Guar gum industry is moving from traditional business to a highly professional business.

Guar International-2014 ( An event dedicated to guar seed and guar  Industry)
Alex shown a very clear clear picture about the global demand of Guar. Chris Carpenter of PFPT message was very clear toward quality production and demand. Guar has to be competitive by Quality wise, Quantity wize and technology wise. I was very impressed by  Dennis Seisun of IMR message. He is very positive about the new opportunity for Gaur Gum. Guar has opportunities to replace the other hydrocolloids.  A better packaging and representation of Guar can draw a lot of attention of end users.

Guar International-2014 ( An event dedicated to Guar gum seed Cultivation and guar gum processing

Mr Uday Merchant focused on quality development and investment in R&D by industry. He also focused on loss of blind competition and neck to neck business.  Over production capacity and over processing capacity can lead the industry toward heavy loss. It was knowledge full delivery of message by Dr. Shyamal Purkayastha on  Emerging trends in guar processing, technology and applications.

Guar International-2014 ( An event dedicated to guar seed Processing and  guar Gum importer and End user)

Research work of Dr. Randhawa on biotechnology approach on Guar crop really very impressive. He delivered the key highlights of his work and further opportunities in  crop improvement. His work on Genom sequencing and Identification of key gens in guar crop is good opportunity for Indian  Guar Gum Industry,

Guar International-2014 ( An event dedicated to guar gum seed researcher and guar  gum seed cultivator )

Report of Mr Sidharth Surana was a picture of current guar crop which gave an idea on effect of poor monsoon on current crop. Panel discussion on guar outlook and  guar rate prediction was very interesting.

Guar International-2014 ( An event dedicated to guar gum present and future development )
The participation of Guar Gum processor, Guar Gum manufacturer, service provider, plant & machine supplier, warehouse service provider, print media. This beautiful and knowledgeable event is a brainchild of House of Tefla.

Organizer / financier of  Guar International - 2014 -The matured Guar Gum Seed Crop.