Guar seed & Guar gum future prices and Increased MSP ( Minimum Support Price )

During July month Guar seed and Guar gum prices are recovering slowly and slowly. Marketman and considering that this year Guar seed and Guar gum will give the good return. During new production cycle prices of Guar seed and Guar gum is expected to remain high in comparison to last years. Most of fundamental factors are positive at this time for Guar seed and Guar gum.

MSP of Kharif crops: This year govt has hiked the MSP of most of Kharif crops grown in Guar growing belt. In irrigated region Cotton, Paddy, and Maize are the major competitive crop to Guar. MSP of all these crops has increased. Farmers of irrigated belt especially from the Ganganagar, Hanumangarh, and Bikaner will go for other crops over Guar crop. Generally, the quality of Guar seed produced in Guar guar growing belt is better that rainfed Guar seed crop. Guar gum content in Guar seed and quality of Guar gum in better in irrigated Guar seed. The growth of Guar seed plant remains healthy due to the availability of sufficient moisture.

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In the rainfed area, farmers will go for Bajra and Moong / Green gram as MSP of both crops has increased. Govt has increased the MSP of mung around 7000/100Kg. In rainfed area, if rainfall remains good then farmers will not go for Guar seed crop in first preference. Framers will keep showing other crops with rainfall. If the field will vacant then in the last stage, farmers will go for Guar seed crop. Quality of late sown Guar seed will be not good as Guar seed pods don’t mature on time and farmers harvest the crop with unmatured Guar seed pods for Rabi crop sowing.

This is an election year and Govt will go for procurement of Kharif commodities at MSP and farmers will benefit from increased Kharif crop MSP. Production of Guar seed will remain low and quality of produced Guar seed will not be good. Tight supply of guar seed and gaur gum will lease to price rise. By-product of Guar seed processing, which is commonly known as guar korma is used in cattle feed industry. Guar korma is emerging as the substitute of soy meal. This year govt has also increased the MSP of soybean. Guar korma prices will get support from increased soybean MSP.

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