International Commodity Intelligence Report : Guar Seed & Guar Gum Market Update :24 March 2026
Guar Prices Ease Amid Selling Pressure, Weak Export Sentiment and Global Trade Uncertainty
Despite firm global crude oil prices, the guar gum price trend remains under pressure due to lack of fresh export orders and volatility in international markets. Market participants note that crude oil strength is currently supply-driven rather than demand-driven, limiting its immediate positive impact on guar gum demand in the oil and gas industry.
At the same time, a strengthening US Dollar in global currency markets is exerting pressure on Indian agricultural exports, including guar gum exports from India, by increasing pricing challenges and reducing competitiveness in international markets.
Spot Market Overview
In the physical market across Rajasthan, guar seed prices in India are holding relatively stable despite the broader correction. Good quality guar seed is trading around ₹5,400 per 100 kg, while average quality is quoted near ₹5,200 per 100 kg.
Standard quality guar gum prices in India are reported near ₹10,190 per 100 kg, reflecting marginal softness amid weak export demand. In interior mandis, guar seed is trading in the range of ₹5,000 to ₹5,200 per 100 kg, depending on quality, moisture content, and regional demand.
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| Guar Prices Ease Amid Selling Pressure, Weak Export Sentiment and Global Trade Uncertainty |
Futures Market Analysis (NCDEX)
In the futures segment on the National Commodity & Derivatives Exchange (NCDEX), guar contracts closed on a mixed to weak note, reflecting profit booking and cautious market sentiment.
Guar gum futures (5 MT contract) saw the April contract closing at ₹10,158 per 100 kg, down by ₹42 or 0.41%, while the May contract declined by ₹35 or 0.34% to ₹10,299 per 100 kg. The June contract bucked the trend, rising by ₹93 or 0.90% to ₹10,287 per 100 kg, indicating selective buying interest in forward positions.
Open interest remained active, with approximately 49,855 lots in April, 14,880 lots in May, and limited positions in June contracts, suggesting continued participation by traders despite short-term volatility.
Similarly, guar seed futures (10 MT contract) also closed lower. The April contract settled at ₹5,479 per 100 kg, down by ₹21 or 0.38%, while the May contract declined by ₹33 or 0.59% to ₹5,548 per 100 kg. Open interest stood at 43,870 lots for April and 16,920 lots for May, reflecting cautious positioning by market participants.
Currency Impact: Strong US Dollar Pressures Exports
A strengthening US Dollar is emerging as a key macro factor impacting the guar export market in India. Exporters are facing pricing pressure as higher freight and logistics costs reduce margins, forcing them to ship larger volumes at competitive prices.
This dynamic is effectively lowering realizations per unit and is putting downward pressure on international guar gum prices, particularly in price-sensitive markets.
Supply Situation and Arrivals
Current arrivals of guar seed remain limited, as the market is still dependent on old stock. Farmers and traders are primarily engaged in Rabi crop harvesting, resulting in reduced market arrivals.
Daily arrivals are estimated at approximately 10,000 bags (100 kg each) in major mandis, mainly driven by immediate liquidity needs. Fresh crop arrivals are expected only after the next harvesting cycle, which is around 5–6 months away.
This controlled supply is preventing sharp price declines and providing some underlying support to the guar seed price trend in India.
Energy Market Disruptions and Industrial Demand
The global crude oil supply chain remains disrupted due to ongoing geopolitical tensions in Middle East and West Asia. Irregular supply flows are affecting refinery operations and creating imbalances in the energy market.
While higher crude oil prices typically support guar gum demand in the oil and gas industry, the current rally is largely supply-driven. Unless supported by increased drilling activity, the direct demand boost for guar gum used in Hydraulic Fracturing remains limited in the short term.
Global Trade Slowdown Impact
The global commodity market is currently experiencing a slowdown, with buyers adopting a cautious approach amid geopolitical uncertainty. Lack of confirmed export orders and reduced industrial visibility are impacting the guar gum export market in India.
Market participants believe that prolonged geopolitical tensions could further dampen industrial demand and delay recovery in export volumes.
Animal Feed Demand Supporting Guar Complex
One of the key supportive factors for the guar complex is the rising demand for guar meal (guar churi and guar korma) in the animal feed sector.
Global prices of key feed ingredients such as soybean meal and corn have increased significantly, driven by higher freight costs, energy prices, and supply chain disruptions. As a result, guar meal is emerging as a cost-effective alternative protein source, supporting demand from the livestock and poultry feed industry.
This trend is expected to provide a strong demand base for guar processing products, even as export demand remains subdued.
Guar Export Statistics
According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported approximately 390,300 metric tonnes of guar gum between April 2025 and January 2026, valued at around USD 452.62 million.
Final export figures for the full financial year are yet to be released, but early indications suggest that total exports could approach or exceed last year’s level of 453,612 metric tonnes, valued at USD 568.97 million, reinforcing India’s dominant position in the global guar market.
Market Outlook
The near-term guar seed and guar gum price outlook remains range-bound with a slightly weak bias, driven by:
- Selling pressure at higher levels
- Weak export demand and global trade slowdown
- Strengthening US Dollar impacting export competitiveness
- Limited arrivals supporting prices at lower levels
- Rising demand from the animal feed sector
While short-term sentiment remains cautious, underlying fundamentals such as tight supply conditions and alternative feed demand may provide support to prices.
Market participants will closely monitor export enquiries, crude oil price trends, currency movements, and global trade developments for further direction in the guar commodity market.
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