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Guar Gum at Lowest level after December 2010

Guar gum has slide down at lowest level after December 2010.  Yesterday the rate of Guar gum in Jodhpur Market was below INR 6000/100 Kg, which was at lowest level after December, 2010. Prices of Guar Seed has also slide down below 3200 In Local Agriculture market of Jodhpur and Ganganagar.

More that 70% Guar gum is used in Oil and Natural Gas industry. Prices of crude oil is also at lowest level.  Demand of Guar Gum has slide down drastically from Oil and Natural Gas Industry. It is peak time of Energy demand but prices are lowest level. There are no any chances in recovery of crude oil prices till next winter  ( November,2016  to March- 2017).



Pressure from crude prices will always reflect in  Indian Guar Gum Industry. Lean period in Indian Guar gum industry will keep going up to 2017. 

It is very critical time for new industries. Most of new plants are closed.  It has become very difficult to recover the processing cost even for old plants. Physical stocking  is main loss making activity for the industries.

Farmers are in demoralized with this price of guar gum.  Some farmers have stock for two three years , they are in heavy loss.  Industry need some new initiatives in R&D and exploration of new market except Oil and Natural Gas Industry.  Dependency on Oil and Natural GAS Industry Must Come down below 50 % for sustainability in Guar  Industry.


Devaluation of Chinese Yuan and its impact on Indian Guar Gum Industry.

In August 2015 China devaluated its currency around 3 % in single week. It leaded to global crises. Economist and market analyst point out that China has taken this step to save its export, which was declining regularly. The declining export was not a good sign for the Chinese economy. China want to maintain its export share in global market.

Indian Guar Gum industry was already facing the crises due to imbalance in demand and supply. In recent year product of Guar gum is increasing continuously and the global demand is coming down due to decline in crude prices. Here I would like to mention that more than 60 % Guar gum is used in Oil and Natural Gas Production Industry. Around 40 % Guar gum is used in other industries.


Guar Guard at guar gum crop cultivation farm 


This devaluation is affecting  Indian Guar gum industry in two way. First china import the Guar Split from India and process it and re-export it. Import export is done in USD but the processing cost comes down and china provide guar gum powder at lower rate than India. This is the first effect. 

In another way China is supplying alternate product of Guar Gum at lower cost than earlier. Xanthon gum is major alternate of Guar Gum powder which is used in other  than Oil and Natural Gas  Industry. There is a lot of requirement of guar gum powder from food processing, processed food, pharmaceutical industry, textile industry, Souse & catchup industry, FMCG industry, liquid shop and detergent industry. China is major producer of Xanthon gum . It is substituting at large scale.

Though Xanthon Gum is not a complete alternate of Guar Gum , but industries are preferring Xanthon gum due to lower price than Guar Gum.


Guar gum cultivation statistics of Rajasthan year 2015-2016

Govt of Rajasthan has launched the crop wise area sown for Kharif season. As per data released total sowing  of Guar is on 39,18,000 Hac in year 2015-2016 , by the end of season it might be reach  up to 40,00,000 Hac.  This is 23% more  than  the last year.  This figure was 31,84,000 Hac in the same period of last year. If we take a average productivity of  400 Kg per Hactare then there are chances that this figure may cross the last year production. Thus there may be a production of 16,00,000 MT Guar seed in this year ( 2015-2016 ) from Rajasthan.



Solvay and L'Oreal join hands for sustainable guar farming in India

Solvay, the Belgium-based manufacturer of specialty chemicals, and L'Oreal, the French cosmetics and beauty company, have teamed up in a scalable three-year project to teach and promote sustainable agricultural practices among 1,500 guar bean farmers across ten villages in the desert region of Bikaner, Rajasthan.

Solvay is one of the leading global players in guar derivatives and supplies its customers who formulate these ingredients in a variety of applications such as in food, cosmetics, oil & gas extraction and textile industries.

Grown mainly in India's semi-arid regions, guar is the main resource for many farming communities but its production is volatile as it relies on monsoon rains. Solvay's ‘Sustainable Guar Initiative’ aims to empower countless farmers with the tools and knowledge to cultivate the crop through good agricultural practices, resulting in more continuous, high-yield production. Solvay's Novecare global business unit (GBU) in 2013 launched the initiative, which is also implemented by non-governmental organisation TechnoServe, as part of the Group's sustainable development strategy Solvay Way.

"Solvay’s initiative and partnership with L'Oreal, acting as a founding member, brings many benefits - for farmer communities, their environment as well as for demanding industrial applications. The project will help farmers improve the use of water and preserve the soil, it will raise their income and support local communities. Our approach will also reinforce the availability of bio-based guar for industries and allow them to promote their ambitious sustainability goals,” said Emmanuel Butstraen, president of Solvay Novecare and sponsor of the ‘Sustainable Guar Initiative’.

India is the world's top guar producer with about 80 percent of total production. As a drought-resistant crop, guar conserves water resources and replenishes soil nutrients through nitrogen fixation. The seeds are processed to obtain guar gum. Demand for this ingredient is on the rise in a range of industries.

Laurent Gilbert, director for International Development of Advanced Research at L'Oreal, commented, "Our partnership with Solvay is a concrete implementation of our ‘Sharing Beauty with All’ sustainability commitment. By improving yields while promoting a suitable model of sustainable agriculture, we will improve the livelihood of farmers and protect local resources such as water, soil and biodiversity. This program will allow ensuring a durability of income for guar bean farmers while considering the impact of climate change into their activities.” 



For more information please click the below link.




Guar Korma the emerging base of Guar Gum Industry.

In this worst performance of guar gum, guar korma is emerged as main leverage for the guar industry. Low global demand, excess production and low prices of crude oil and natural gas is putting a negative impact on guar gum prices. Industry is getting strong support from Guar korma. 

Three year before when prices of Guar seed were Rs 27,000/100 Kg and guar gum at Rs 90,000/100 Kg at that time rate of guar Korma was only Rs 5/Kg. Now it is totally different , guar seed is at Rs 3700/100 Kg and Guar Gum is at Rs  7800/ 100 Kg and guar Korma is at Rs 2600/ 100 Kg. 

There are two possible reason. Protein content in Raw Guar Korma is up to 45 % which can be increased up to 56% -58 % by cleaning and roasting of Raw Guar Korma. At the another side Soya oil Cake is major competitor of Guar Korma with maximum 45 % protein.

Cattle feed industry prefer Guar Korma over Soya protein. Guar Korma is more digestive in nature and it is cheaper  than Soya. Demand of Guar Korma is very high from the cattle feed industry.

At another side there is low demand of guar gum so processing of guar seed is almost closed, that's why supply of the Guar Korma is very low and demand is high. 

There is huge potential of Guar korma from cattle feed industry. In coming two three year it is not impossible if Guar korma reaches at 5000-5500. Market of Guar Korma is very sound and is growing Day by day. Cattle feed industry will now downfall like oil and natural industry. Demand of cattle feed will increase day by day. 

Seed Treatment or Inoculation of guar seeds for cultivation

Guar is a leguminous crop and its roots bear nodules with special kind of bacteria that converts atmospheric free nitrogen to fertilizer available form. This symbiotic relation between bacteria and root nodules helps to reduce the cost of nitrogen fertilizer for crop. Therefore, to maintain the population of bacteria in the soil with respect to growth of plant seeds of Guar are to be inoculated with these bacteria before sowing. 



This is done by preparing a 10 percent sugar or gur (jaggery) solution in boiling water. This jaggery/sugar solution is allowed to cool. After cooling, 3-4 packets of Guar bacterial culture (Bradyrhizobium sp.) are mixed to make a thin paste. This paste is coated over to the seed. Seed is dried under shade for 30-40 minutes before sowing. 

Guar Gum prices will be hurt by ban on Nestle owned noodles "Maggi .

Nestle is one of largest consumer for Guar gum specially in food industry.  Its application in Noodles and other food items consumes guar gum. The noodles brand "Maggi" has made penetration in Indian market very fast, Maggi is almost consumes through out the India. Recent controversy of  finding of food ingredient more than limit has leaded to ban of MAGGI though out the India and many South East Asian countries.



This ban is also hit the other brands of noodles. Since Food industry is largest consumer of Guar gum after  Oil & Natural  Gas Production industry. Already there is slow down in Oil and natural gas industry, then there was little bit hope form Food Industry. The Ban on MAGGI has hit the consumption of guar gum in food industry.



The demand of Guar gum will remain under pressure during this controversy. Processed food is very goof market for Guar gum. Govt and Industry must come out form this situation. This will be helpful for Farmers and industry both. This ban has also hit the other food ingredients, which are used in MAGGI.

Maggi also uses guar gum in large quantity like Tomato Ketchup , PASTA, Magic Masala etc..But Noodles were having major market share.

Crude Oil Prices to Remain at Under $80 Per Barrel for Three to Seven Years – LUKoil President

Global oil prices will not exceed $75-80 per barrel in the next three to seven years, President of Russian oil giant LUKoil Vagit Alekperov said Thursday.

"We assume that oil prices in the coming years are unlikely to exceed $75-80, this in a medium-term period, from three to seven years,” Alekperov said in an interview with Rossiya-24 television channel.

Oil prices more than halved during the last six months of 2014 amid oversupply in the market.

After reaching a five-year low of under $50 per barrel in January, Brent crude futures currently stand at some $62, while WTI crude stands at nearly $57 per barrel.

Alekperov stated that he does not expect the Organization of the Petroleum Exporting Countries (OPEC) to agree on cutting oil production during its upcoming meeting, set to kick off on June 5.

During its last meeting in November 2014, OPEC, whose 12 member states account for over a third of the world’s oil output, decided against trying to boost plummeting oil prices through production cuts.

This prediction may be major input for future guar gum prices.




Guar ( Guar Gum or cyamopsis tetragonoloba ) curry.

To increase the consumption of Guar seed industry will have to come with new idea. I am working on this idea that how to increase the consumption of Guar. Traditionally Guar was used a regular food item for Human and Cattle. in interior area of Rajasthan it is still used in many traditional  food item 

  1. Guar is used as making fried namkeen daal just like Moong Daal.
  2. Whole Guar is used in making Mixture Namkeen by frying in cooking oil and sprinkling the spices on it. There is huge consumption  of guar in Bikaner Namkeen Industry.
  3. Guar  dehydrate green bean are used as snakes after frying it.
  4. Guar is also used as making Guar daal curry
  5. Guar whole Daal curry.
  6. Guar green beans are used as making green vegetable curry.
  7. Boiled guar seed is given to milking cattle
If you have any idea please share with me. Lets taste Guar curry recipe traditionally it is used in western Rajasthan.  We can find this type of food curry among rural communities. Some people also use guar as fortifying the flour,.It increase the protein content in flour. 


Traditional  Guar  Curry

Traditional  Guar  Curry

Guar curry is very simple. Sock the guar seeds in water for whole night.( 12 hour). The size of seed will increase three time.  Now wash and drain the water. Take oil in fry pan, heat it for spicies fry.  put some asfatida ( HING) then cumin seeds. mix one spoon garlic paste, fry it then after fry onion and green chilies as per taste. Now add the shocked over night guar fry it. Now add regular kitchen spicies Red Chilie, Coriander powder, Turmeric powder and small peaces of tomato. Now cook it in open pan or in pressure cooker. After half an hour check it if it is cooked or not. If yes then sarve it Rice or Roti ( Chapati) or Naan. You can add some curde ( 1-2 spoon) in Guar Curry after cooking.



It is good in digestion. It is rich in protein . It is also good for intestine as it is very rich in fiber. It will also stop fat decomposition on body. It is laxative in nature so it good  for digestive system.

Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation area will increase more than 30% in this year ( 2015-2016) .

A new picture of Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation area gives a prediction of more than 30% increase in Ganganagar-Hanumangarh  guar production belt.

Last week I visited Shri Ganganagar, the major guar seed producing belt. In context to Guar seed production, picture is totally different. Seed producer, Seed dealer and Seed seller are presenting a new picture. Their inputs indicates that guar seed sowing will increase this year. farmers are not showing interest in cotton seeds.  They are preferring guar over cotton.Guar seeds are sold as hot cake.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop in farm

 In irrigated belt farmer takes Cotton crop as major crop, but farmer are shifting slowly and slowly from cotton to Guar. As per estimates there will be 30 % increase in guar seed sowing as compare to last year specially in Ganganagar-Hanumangarh belt. It means there will be  30% more production if conditions of climate remains same. 

I discussed with one farmer Mr Manoj Jangir. Mr.Jangir also run a agri input business. This year guar is first preference for farmers. He said that  guar is a 3-4 month crop while cotton is 5-6 month crop. farmers will free from his farm operation with in 110-120 days.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop in farm
Another farmer Mr Arvind Godara, Arvind is a young farmer and holding large size of farm. He told that Guar is a easy crop to cultivate,  unlike the cotton you don't need to be engage daily in the farm. Guar is low labor intensive crop. It doesn't require regular dose of insecticide and pesticide. In cotton crop, farmer has to go for insecticide- pesticide application every fortnight, even some times they have to apply weekly.


Guar ( Guar Gum or cyamopsis tetragonoloba ) mature harvested crop
New generation is happy with guar  as there is no too much tension and investment in guar cultivation. Even guar can survive easily in worst conditions. It need less irrigation than cotton.  The only concern is rate. since two year cotton is also not giving any major economic advantage over Guar. The farmers looks toward stability of Guar seed prices, If guar seed remain above Rs 3500/100 Kg, then farmer will be making profit. The current level of Rs 5000/100 kg is good for farmers. Input cost of Guar farming also very low. Guar is native crop of the region, so it grows well in hot and dry climate.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop  harvesting
If production of Guar seed will increase then it may increase the supply of seeds in local market. This over supply can put pressure on guar prices. Farmers are hope full that consumption of guar seed will increase. For farmer point of view risk factor is more in Cotton while Risk factor is less in Guar. Even guar is also source of green vegetable, cattle feed, soil amendment. No doubt Guar is a major cash crop in this area. 


Dr Deepak Rjpurohit ( Assistant Professor)  Mr Manoj Jangir ( Farmer and Agri Input Business owner )   and Me 
I also meet one entrepreneur Mr Sunil Nitharwal. He runs the business of guar seed production. He told that picture of Guar has changed in last 3-4 years. Every year new varieties are released. His company produces seeds of more than  7-8 varieties of  Guar seeds. Farmers are taking interest in his seed production program. His business of guar seed is growing. this year demand of Guar seed is high in market. He has supplied most of hist stock to dealers for new crop sowing. He is still getting demand of  Guar seed.

If  cultivation area increase then it will put a major impact on total production of guar seed in India. Ganganagar-Hanumangarh belt is major guar cultivation belt where guar is cultivated under canal irrigation water.It is ure that production of guar seed will increase in this year. 


Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds for cultivation.

This is best time for Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation. Good seed is first step toward successful Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation.


Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds

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Guar ( Guar Gum or cyamopsis tetragonoloba ) seed cultivation farm 
                     
Guar ( Guar Gum or cyamopsis tetragonoloba ) seed is used for Guar gum production.  Guar gum is used in more than 50 industries. it si used as cattle feed, it is used as human food, it is used as Industrial product. 

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Guar ( Guar Gum or Cyamopsis tetragonoloba ) seed mature pods


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Guar ( Guar Gum or Cyamopsis tetragonoloba ) seed mature pods

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20% decline in Guar Gum export as compare to last year. Bad news for Indian Guar Gum Industry and Guar Seed Producer.

APEDA has released new data, as per these data , this year there is 20 % decline in Guar Gum Export from India as comparison to last year. Last year ( 2013-14) export of guar gum was  INR 11,723 Crore this year ( 2014-15 ) figure is INR 9479 Crore. Ultimately this loss is in farmers pocket.



( With courtesy of Financial Express )

Govt must promote guar product and invest in R&D in product development. Guar is multi-use product. It need more attention then other commodity. As per international market this data may further come down this year.  Some industries are adopting wrong practices by dumping teh guar to its end market. If Guar gum comes down further then tere willbe direct impact on poor farmers of western Rajasthan.

Just two year before Guar was number one exportable agriculture commodity from India.It is loosing its position year by year.




Please read complete story with Financial Express.:-

http://www.financialexpress.com/article/markets/commodities/buffalo-meat-exports-exceed-basmati-shipments-in-fy15/70374/

Why Guar seed and Guar Gum is going up ? Is it real or speculative ?


Guar and guar gum both are becoming highly speculative in nature. Every week there is different picture , In one week it is goes up in next week it slide down. Either it reflects as top looser or it reflects as top gainer in commodity exchange. IS it real or speculative. Commodity should follow same trend at list for one month  specially in international market, because it take minimum two month in contract negotiation and delivery.

It is questionable that why this trend  of speculation is keep going in forward market. NCDEX is only market where Guar Seed is traded, so it is very easy for speculators to manipulate the market trend.


Following factors gives a clear indication of price fall for guar seed and Guar gum. up to last month it was moving down side but from last month it is moving upside with regular speculation.


Why Guar seed and Guar Gum is going up ? Is it real or speculative ?

Bumper Production

As per existing data available and released by different state govt there was production of more than 3.4 Million MT Guar Seed production. It is 1.4 million more than the one year demand. Last year demand of guar seed was 1.8 Million MT that is be some where equal to 2 Million MT.

Carry Forward Stock of Last years

As per last year demand and supply data there was  carry forward stock of 0.8 Million MT. Before last year, production of guar seed was also bumper. if we add this carry forward stock to last year production then Huge stock of guar is available in market. This is the reason that Guar seed prices are continuously falling since new harvest arrival started in market.

Demand of Guar 

The demand from Oil and Natuarl Gas Industry is low this year. Figure of guar gum demand  should be lower than last year. As per analysis demand of Guar seed for this year should be around 1.5- 1.7 Million MT, so this year , there is  1.7 Million MT Over production as per demand.


guar seed and guar gum seed.

Low crude Prices 

Most of Guar gum  is used in Oil and Natural Gas industry for hydraulic fracturing process as Guar Gum Powder. Due to over supply of oil in market prices of crude is its lower level. For a stable guar seed and Guar Gum prices, prices of crude oil should be more than 80 USD/ Barrel. But it is far below than this figure. Guar is a demand driven product. In this over production condition there is no chances of supply driven movement.

Warehousing in USA

Many Indian companies has stocked there production in US for ready to sell and cash and carry concept. This activity is back biting the industry.  Industry has loose the long term contracts buyer gives order as per their current demand. There is hyper competition and low margin. Fragmented demand cant be stable factor for the price rise. 

Processing Unit in India

Some foreign partner has developed the processing facility in India so it is not easy to identify the new demand so early that it can give immediate effect to market prices.

IF we analyse the above factors and try to correlate the demand and supply then rate of guar seed should be in the price brackets of INR 3000-4000 / 100 Kg. But it is being traded more than 5000 with regular speculation. Investors are advised keep away from this game of speculation.

Guarkernmehl (Guar Samen) Anbau-Beratung in Deutschland

Guarkernmehl (Guar Samen) Anbau-Beratung in Deutschland

Guarkernmehl (Cyamopsis Tetragonoloba) oder Guar Samen entsteht als bedeutende industrielle Ernte. Guarkernmehl-Pulver wird aus den Samen der Guarbohne hergestellt. Guarkernmehl-Pulver hat breite Anwendung in verschiedenen Branchen. Großen Nachfrage Guarkernmehl Pulver leitet sich von der Erdöl- und Erdgas-Industrie. Guarkernmehl-Pulver wird in hydraulische fracturing Prozess für Erdölförderung verwendet. Guarkernmehl-Pulver wird auch in der Lebensmittelindustrie verwendet. Es ist verbreitet in verarbeiteten Lebensmitteln.

Guarkernmehl (Cyamopsis Tetragonoloba) oder Guar Samen ist 90-120 Tage-Crop. Es kann im Niedrigwasser Verfügbarkeit Bedingung kultiviert werden. Betriebsführung ist sehr einfach. Es erfordert keine regelmäßige Landwirtschaft Praktiken im Bauernhof.

Komplettlösung für groß angelegte High-Tech Mechanische Anbau, die Beschaffung von guten Samen, Entwicklung und Verwaltung, Behandlung von Guar Samen Guar Split, Guar Korma, Guar Churi, Guarkernmehl-Pulver, die Beschaffung von Guar Produkte, Ausbildung und Exposition Tour, internationale Qualitäts-Zertifizierung, Färbung-Forschung und Entwicklung abzuschließen.

Wir führen Landwirtschaft / Agribusiness-Experte, der Beständigkeit Guarkernmehl (Cyamopsis Tetragonoloba) oder Guar Samen Anbau vorsehen. Wir haben das Projekt erfolgreich realisiert, in Indien, Indonesien, Russland, Europa, Tansania, Sudan etc.. Unser Team unterstützen Sie beim Erwerb von guter Qualität-Samen, Vorbereitung zu landen, Saatgut, Aussaat, Bewässerung und Insekt Management, Pflanzenschutz, Boden Nährstoff Management und Guar ernte ernten. Unser Team hilft auch Auswahl an Land, finanzielle Planung für Projekt, Lagerung und Lagerverwaltung.

Unser Experte hat volle Erfahrung unter komplette mechanische Anbau, kontrollierte Bewässerung, mechanische Ernte, mechanische Anwendung der Insektizide oder Pestizide in 100-200 Hektar großen Gebiet zu arbeiten. Unser Experte kann auch helfen, um zu verstehen, die Verarbeitung der Guar Samen zu teilen dann Guarkernmehl Pulver Guarkernmehl.

Guar dient auch bei Rindern, die Futtermittelindustrie, verbleibenden Teil des Gaur Saatgut Verarbeitung zu Pulver Guarkernmehl in Viehfutter verwendet wird. Es ist reich an Eiweiß und Ballaststoffen.

Bitte kontaktieren Sie uns für weitere Details.

Will guar seed and guar gum prices keep rising or drop further ?

Guar will open low and it will settle down to last level up to end of April contract. Last week we have seen major recovery in guar prices. Guar seed and guar gum both improved very fast.  This hike was highly speculative.  At low volume speculators try to manipulate with circular trading to boost next contracts. In this process they pull out their investment with profit. This is time for Rabi commodity trading in guar growing belt. Price rise will not lead to improvement in trading and arrival of seed in market. Existing data predict that there will be further drop in guar gum export in this quarter as compared to last year.

In May contract situation will same with decreasing trading volume speculators will active and will try to influence market upside.  Investor should avoid low volume contracts as there is high risk of speculative trading.


Dried mature guar pod ready for threshing 

Farmer and trader both don't touch Guar seed in this period. If the farmer will reach to market then no one will ready to buy his produce except guar gum factories. Factories are located on major town and cities. We can say it is not approachable for every farmer. There is channel of unregistered small traders; generally these traders are located in every 4-5 villages. These traders purchase directly from farmers and collect from 4-5 villages and sell to factories.

There is improvement in crude and natural gas in international market. If WTI crude crosses the level of 65 USD then guar may see further rise in rates. In international market crude may drop again as OPEC have taken decision to continue to increase their crude production? The current price is crude oil is not getting strong support of demand. There is still fear of further crush in crude prices.

In grain market there is no arrival but there is sufficient arrival with running factories. With big processor there is sufficient own stock. There is no problem with supply side.


Guar crop farm- healthy green guar crop

Even before last year, the situation was same. There was regular rainfall up to April, after that Monsoon was good and was bumper production. In rain fed Guar growing belt the area will same as last year. In irrigated belt farmer will switch to guar from cotton. Guar is still profitable than Cotton. Even in zero production situations there is sufficient seed for next year. Actual problem has created by producers themselves; they dumped stock in USA and selling in hyper competition.

In international market crude is strengthening. Currently it is giving strong support to guar seed and guar gum prices. In this week three main data will be released,which will decide the future of crude.

Tuesday, April 21
The American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.

Wednesday, April 22
The U.S. is to release data on existing home sales as well as a government report on oil inventories.

Thursday, April 23
China is to release private sector data on manufacturing activity.




Guar gum export has declined 38.47% as compared to last quarter( Jan-15, Feb-15 and March-15)


After analysing exports data from reliable sources, it was found that there is decline in guar gum export. There is sharp decline of 38.47% during this quarter as compared to last quarter and there is also 14.24% decline in export in guar gum as comparison to last year.


Export of guar gum decline as compare to last quarter, this year (2014-2015)


                            Export  Decline as compare to last quarter , This year
Month
Quantity
Month
Quantity
October-14
35690. 737 MT
January-15
27763.292 MT
November-14
41123. 216 MT
Feburuary-15
26453.050 MT
December-14
42112.359 MT
March-15
18959.028 MT
Total
118926.312 MT
Total
73175.370 MT
Total Down fall  in this quarter as  compared to last quarter (-) 45750.942 MT
Percentage downfall in export as compare to last quarter  (-)  38.47%

  
Post harvest practices of guar gum seed (cleaning & removal of  husk and other foreign particles ) 

Export of guar gum decline as compare to Last year (2013-2014) in the same Quarter

                            Export Decline as compare to Last year in the same Quarter.
Month
Quantity
Month
Quantity
January-14
28422702  MT
January-15
27763.292 MT
Feburuary-14
28145285  MT
Feburuary-15
26453.050 MT
March-14
28759146  MT
March-15
18959.028 MT
Total
85327133 MT
Total
73175.370 MT
Total Down fall  in this quarter as  compared to last quarter (-) 12151.763 MT
Percentage downfall in export as compare to last Year same quarter  (-)   14.24%

Guar gum seed is becing packed in bags for warehousing 

Global demand of guar gum has come down. During last quarter export was increased as compare to previous quarter. After in depth  analysis it was found that Indian exporter opened their subsidiary and stocked material in importing countries, now that stock is not cleared and sharp decline has noticed in guar gum export.

In coming days rate of guar gum and guar seed may further come down. Rs 2500/100 Kg for guar seed and Rs 6500/ 100kg for guar gum may be a bottom line. There are no chances of further improvement in rate even in next year. As per climatic condition, monsoon will be good this year and  guar crop will be is good condition. Carry forward stock of guar seed and new crop arrival will make it over supply condition.

Guar Seed &Guar Gum may become hot commodity, If demand rises from other than Oil &Natural Gas industry

During this week Guar Guar gum seed and Guar gum prices are improving slowly and slowly in future market as well as in spot market. If we analyse the entire factors we will find that things are not in favor of prices rise. First time in history there are crude oil inventory crises in USA. There is over production of crude in USA. This over production is continuing means there is not storage available for new production. In coming future crude prices may crash to a new lower level of this year. Demand of new guar is not so hot. Existing contract may keep going but there are lesser chances of further demand rise. 

      Guar gum seed prices in sport market from 1st October, 2014 to 25th March, 2015.

At Supply side there is sufficient production and there can be a carry forward of 15’000’000 Qt Guar seed (15 Million bags) for year 2015-2016 from year 2014-2015. In worst case scenario there is sufficient stock of guar seed to cover the demand of guar gum domestically and internationally. As per early data released by Govt we find that there will be good monsoon during this year. Cotton is parallel crop of guar, which is also not preforming well. 
During this year farmer will prefer Guar over cotton especially in irrigated area. International rating agencies are giving prediction of improvement in Indian economy. It will lead to Rupee strengthen against USD. If INR will strengthen then there will be low Rupees inflow.

Mature guar crop ready for harvest in Farm in Rajasthan 
There is hope from domestic consumption. At lower price, application of guar gum may increase in other industries. At low price Guar gum will be affordable for other industries. If total share of other industries  increase up 50 %, than oil and natural gas industry, then guar guar may become a hot commodity for long term basis. Guar meal and Guar Korma will also give a strong support to guar seed prices. Currently guar Korma and Guar Churi is preforming very well in comparison to last years and guar gum. Churi Korma will always work as base line for Guar seed price.

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