Guar gum and guar seed prices are falling freely with Crude prices

Crude oil prices are going down and down every day. There are rare chances of recovery in crude prices at list for next 12 months. It is predicted that crude prices may fall up to 20 USD/ barrel from current level of 33 USD/barrel. 

More than 60 % guar gum powder is used in oil and natural gas industry. Is it justified to associate Guar prices with crude oil prices as most of stack holder of Guar Industry thinks. It is not true as 70% of guar seed is used in cattle feed industry as Guar Korma or Guar Churi. It means  around 80 % Guar seed in not used in oil and Natural Gas Industry.

In this current situation, price of guar seed is not falling it is taking a correction of sudden increase in price in year 2012. If we analyse the historic prices of Guar then we find that INR 2500-3000 is a stability level for Guar seed.

Cultivation area and Production has just doubled in last 3-4 Years. Industry is still consuming the Guar seed produced by the farmers.

Farmers or stack holders don't need to take  tension. Guar industry will keep growing. The uses of hydro colloids is increasing day by day. Industry will benefit from stability of  Guar prices. It will more strengthen with narrow space of fluctuation in guar prices.  

It is time to revive the industry from a Traditionally Proprietorship firms to Global Brands. Yes Global Brands. It is pathetic 10,000 crore Industry does not have one trusted brand. 

It is noted that Guar Gum export has come down more than 50 % in comparison to last year. 

1 comment:

  1. Will u please tell m about future rate of guar seed .Will it totally dependent on crude oil price or domestic demand also.I have approximately 200qntl of guar seed should i sell it or wait for some time.Waiting for your precious advise...