Guar and guar gum weakened with falling crude oil price

Last week was very good for guar seed and guar gum prices but in this week prices of guar seed and guar gum has fallen with falling crude oil prices. That is just a sentimental factor. USA and OPEC have increased the crude oil production before the sanction on IRAN. Increase in production of crude oil will continue so that countries can cut the oil import from IRAN and supply of crude oil can be normal after sanction on IRAN. Oil production in USA is based on fracking technology and guar gum is used in fracking technology. 15 OPEC countries produced more than 33.3 million barrel per day of crude oil in October month which is highest after month December-2016. Crude oil prices are fundamental factors for guar seed and guar gum industry, but it should not be considered same in all situations. Currently crude oil prices are decreasing due to increased oil production. Demand of crude oil is still very high. 

Guar in not a single used commodity. Guar is multi use commodity. Future demand of guar gum may arise from any industry. Oil and Natural Gas industry will keep using Guar gum in crude oil production. There is trade dispute between USA and India. Recently USA has removed 50 Indian products from duty free GSP list most of them are agricultural products. Demand of Food grade guar gum is regular. Prices of Guar Churi/ Guar Korma is good and it is maintaining the higher levels. 

This year production guar seed is estimated lower than previous years. Marketman are estimating the production of guar seed around 60 - 70 Lakh (6-7 Million) bags (100 Kg each). That is insufficient for current year demand of guar seed. Demand of guar seed will remain weak in this week due to Diwali season. Guar gum processing factory staff will be on Diwali holidays. Arrival of guar will be also poor as farmers are busy in festival. Guar seed and guar gum Business activities will increase after Diwali week (after 11th November). Supply is still poor in market. Speculators are active in market. Keep hold on physical stock and positions of guar and guar gum . Guar seed and guar gum prices will bounce back with increased business transaction. Volume of November transaction is coming down but volume of December month contract is increasing in commodity market that is good sign. 

Guar seed and Guar gum commodities are being quoted weak in local markets due to falling prices in commodities markets. Prices of Guar seed and Guar gum both are quoted weak. Future trading of Guar seed and Guar gum are also weak due to falling crude oil prices. Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4500/100 Kg. Standard quality guar gum is traded at Rs 10300/100 kg. In interior location, guar seed is traded up to 4300/100 Kg. Guar seed is being traded downward in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT closed at Rs 4548, 4635, 4693 lower by 0.07 percent or INR 3/100 Kg, 0.02 percent or INR 1/100, 0.07 percent or INR 3.5/100 Kg with open interest of 66020, 104260, 6430 for November, December and January month contracts. 

Guar gum is also being traded weak in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being closed at Rs 9920,10080, 10200 lower by 0.14 percent or Rs 14/100Kg, 0.12 percent or Rs 12/100, 0.42 percent or Rs 43/100 with an open interest of 17980, 58580, 1135 for November,December and January month contracts.

Guar seed and Guar gum prices will remain strong with strong buying

During last week there was upward price movement in guar and guar gum prices due to poor arrival of guar seed in market. Stockist and processing industries are regularly buying the new arrival of guar crop in large quantity. There is news that guar crop has damaged due to heavy rainfall in irrigated areas and it has also damaged in rainfed area due to poor rainfall. There are initial predictions that arrival of guar crop will be remain tight. As per market men arrival will not improve in next 2-3 weeks due to poor arrival during Diwali festival period. There is Diwali on 7th November, a major festival in India. Upward prices movement in guar gum seed was noticed yesterday after the opening of business in future market for the current week. Price of guar is quoted high in local physical markets or grain mandi. Trade of guar seed in local market is being done at higher prices. There was no impact of down ward price movement in guar at commodity exchange on last trading day of last week. Trading of guar in physical market was unaffected with downward price movement.

Prices of guar gum is also strong with guar seed. Guar gum prices are showing upward price movement with increase in number of oil rigs in USA and increase in crude oil production. There was significant upward price movement in prices of guar gum during last week. Prices of Guar gum will also remain positive in this week. If the processors get good prices of Guar meal /Churi / Korma then prices of guar gum may be quoted low. Export data of last month has not been released by govt till now.

Guar seed and Guar gum prices will remain strong with strong buying 

Prices of guar seed and guar gum will remain strong in this week. Farmers will carry their produce in market slowly and slowly, stockist and processors will continue to buy their produce. Prices of guar are strong and keep increasing even with arrival of new guar crop with poor quality, black seed and more moisture. Keep the position strong in physical stock. Arrival of guar seed will be poor in Jodhpur region due to damage in rainfed guar crop. Prices of Guar will remain above Rs 4500 /100Kg. Guar is being traded at higher prices in commodity or future market for next month’s contracts than the current month contract. Farmers should avoid carrying their complete produce in market in one lot. If the arrival will increase then it would put pressure on guar seed and guar gum prices.

Demand of guar gum will increase, with increased crude oil production.

As per the Backer Hudges 4 new oil rigs of crude oil production has added in this month in USA. Currently 1067 oil rigs are functional in USA which are 154 higher than previous year. This is good news for Indian guar gum industry. Consumption of crude oil in Chinese oil refinery is increasing. Consumption of guar gum will also increase with new fracking activities.

Arrival of guar gum is increasing in local markets. Stockist are buying guar in bulk. By the end of this month good arrival of guar will start from rainfed area. Speed of arrival of guar from rainfed area will be limited as farmers of rainfed area can hold guar for longer time in comparison to farmers of irrigated area. After the harvesting farmers from irrigated area clear their old credit and buy the farm input for new crop, so they can’t hold the guar crop for longer time. Colour of guar seed has turned black in irrigated area due to rainfall in last period of crop maturity.

If the prices of guar remain good at arrival of guar crop in market then it will boost the guar seed and guar gum prices during rest of year. Export of Indian guar churi korma can increase to China because import of soya protein in China has decreased from USA due to some trade dispute. If export of Indian guar churi korma increases, then guar prices will get good support in local markets. 

Prices of guar gum is also good with prices of guar seed. Guar gum is an export demand driven agriculture commodity. Guar is consumed in local markets, but guar gum is consumed in international markets. If arrival of guar seed remains tight in local market, then prices of guar seed will reach near to Rs 5000/100Kg around Diwali.

Guar seed prices are increasing in peak arrival period.

This is arrival period of Guar seed in guar growing belt. Generally, with the starting of October month, price of guar seed start to fall due to peak arrival period. But this year price movement is totally in different trend. As per market man actual guar seed production seems to below the estimated guar seed production during cropping period. First arrival of Guar seed production from irrigated guar growing belt is of very poor quality. Generally, Haryana side guar is considered as good quality guar seed. As pictures of Guar seed shared by some traders from Haryana it can be observed that quality of guar seed arrival in market is very poor. It is totally black in colour. Even after poor quality traders are buying the black guar with regular guar seed prices.


Prices of Guar seed are under pressure since last three - four years. With opening of guar seed prices around 4300-4500/Kg for the current harvest season, is good start. Even if prices of guar seed remain same at current level of 4500/Kg during whole arrival season then it will give boost to the prices of guar seed during whole year. With current guar seed prices, prices will touch to 6000 level during current production cycle. Other major kharif commodities are covered under the MSP. Guar don’t have any boost of MSP. It is demand driven commodity. Production factor has almost completed for guar seed will not change for next 9 Months. Now the complete guar seed prices movement will be only on demand basis. 

Guar is an industrial commodity which is used in many industries, Major part of guar is used in oil and natural gas industry. During last week oil prices were on boil. There were many geopolitics blame game that USA wanted Saudi Arabia to control the oil prices by increasing the oil production. Saudi Arabia refused to do so. After that USA oil companies increased the production and prices of crude oil has little bit come down. There is possibilities that fracking activities will increase in USA, with upward crude oil price movement. 

Guar seed and Guar gum commodities are being quoted at higher prices in local guar trading agriculture market . Prices of Guar seed and Guar gum both are quoted high. Future trading of Guar seed and Guar gum are strong due to tight arrival and agressive buying. Good quality of guar seed is traded at Rs 4500/100Kg and average quality guar seed is traded at Rs 4200/100 Kg. Standard quality guar gum is traded at Rs 9500/100 kg. In interior location, guar seed is traded up to 4100/100 Kg. Guar seed is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT closed at Rs 4543, 4608, 4672 higher by 3.2 percent or INR 141/100 Kg, 2.89 percent or INR 129.5/100, 2.68 percent or INR 122/100 Kg with open interest of 103480, 22870, 150 for November, December and January month contracts. 

Guar gum is also being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being closed at Rs 9800, 9920 higher by 3.09 percent or Rs 294/100Kg, 2.96 percent or Rs 285/100 with an open interest of 60365, 9390 for November and December month contracts.

In peak arrival period, arrival of guar seed is not increasing in local markets.

This is peak arrival time of guar. Most of guar seed stockist and processors buy and stock guar seed in this season only. Arrival of guar is noted poor in all the major guar markets in the starting of arrival season. Peak arrival of guar seed may take another 10-15 days. Quality of Guar is noted poor in most irrigated belts, but traders are buying it. Once the guar processing factories will start then consumption of Guar will also increase from factories. There are demand of 30,000-45,000 bags of Guar per day processing consumption. Guar price may volatile with poor arrival, poor quality and increase global demand. 

In global market volatility may come in Crude oil prices. Recently US has announced to sanction against the Saudi Arabia. If the crude prices cross in level of USD100/MT. It will boost fracking oil production globally. Consumption of Guar gum will increase with the increased fracking activities. As per export data export of guar gum is increasing. This is election year prices of most of food commodities are under control with good availability and increased production. Scenario with guar commodity is different. Production of guar is estimated poor than previous year, demand of gaur gum is expected to increase with increasing prices. In Forex market USD is stronger than Rs, US importer will try of import more quantity guar gum with strong USD. 

Stockist and speculators are active with prediction of low production and increasing demand. After Diwali guar seed and guar prices may start to move upward. Current prices levels of guar seed are good to buy or stock. There is lesser space for lower movement with bad fundamentals upward side is open with good fundamentals. Last year Guar sport prices were around 3700-3800/100Kg during the October month. This year spot prices of guar seed are moving around 4200-4300/100Kg in this month. There is basic boost of 400-500 / 100Kg in sot prices. Fundamentals of guar seed are strong for this year.

Guar seed and Guar gum commodities are being traded strong in local guar growing belt. Prices of Guar seed and Guar gum are quoted strong. Future trading of Guar seed and Guar gum are strong weak due to poor arrival and strong buying. Good quality of guar seed is traded at Rs 4300/100Kg and average quality guar seed is traded at Rs 4100/100 Kg. Standard quality guar gum is traded at Rs 9200/100 kg. In interior location, guar seed is traded up to 4000/100 Kg. Guar seed is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is being traded at Rs 4269, 4329, 4395 higher by 2.88 percent or INR 119.5/100 Kg, 2.2 percent or INR 94.5/100, 1.96 percent or INR 85.5/100 Kg with open interest of 3910, 110780, 15880 for October, November and December month contracts. 

Guar gum is also being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is being traded at Rs 9315, 9471, 9605 higher by 2.89 percent or Rs 262/100Kg, 2.46 percent or Rs 227/100, 2.56 percent or Rs 240/100 with an open interest of 805, 63620, 3600 for October, November and December month contracts.

Arrival of new Guar Seed crop has started in local agriculture markets (Mandi).

Arrival of new Guar Seed crop has started in local agriculture markets (Mandi). Harvesting of guar seed crop has started in irrigated belt special Ganganagar, Hanumangarh and Haryana. New crop of Guar seed has started to arrive in local agriculture markets. Arrival of guar seed is good in irrigated belt and arrival is poor in rainfed area. Quality of guar seed in Haryana belt is poor, as guar seed has turned black due to heavy rainfall. But there is no major difference in prices in black seed and normal seed. Traders are purchasing the arrival with normal seed. Guar crop has sown late in rainfed area, so guar seed arrival has not yet started in local markets. Arrival of guar seed may take another 10-15 days in full arrival. There is report that minor quantity is coming local markets in rainfed area. 

Market man are estimating that there is production of 50-60 Lacks bags (100 kg each) of Guar guar seeds. Govt data are estimating that there is sowing of guar seed on 34,18,000 Hactare till 24/09/2018. This year rainfall was poor and uneven in rainfed area, so productivity of guar seed is expected to remain low. 

Export of Guar gum is also higher than previous year. Demand of guar gum is increasing in USA. Fracking activities are increasing in USA. This year 10% more Oil rigs are functional than previous year. Crude oil prices are increasing in international market. Crude oil price is increasing continuously, and it has reached more than USD 84 /barrel. Though WTI crude oil is around 73 USD/barrel. USA has put restriction on trading of Iranian oil. There is tight availability of crude oil is global market. 

Matured Crop

There will be arrival pressure on guar seed and guar gum prices for next two months. If the guar seed arrival is local market remains poor in next 15-20 Days, then prices of guar seed and guar gum will increase. Guar is taken only in one season so, exporters and stockist will have to buy and stock guar commodity in this season only. China is largest importer of soya meal from USA. This year there is trade dispute escalation between China and USA. Guar korma will get good market in China. If Guar protein/ Guar Meal gets good market potential, then guar seed prices may rise further from the current levels. 

Till August 2018 there is export of 2,22,055 MT of Guar gum which is higher than previous year. In monetary terms there is export of guar gum of 301 Million USD or 2039 Crore Indian Rupees.

Guar gum industry is being hurt by speculations in commodity market

India is the largest producer of guar seed and major exporter of guar gum to international market. Guar gum is a major farm export from India. There are various industrial application of this agriculture produce. Major demand of this farm product arises from Oil and Natural gas industry for the fracking process. Industry representation organization and Govt is not giving proper attention to guar commodity. Guar gum is not negligible commodities. Indian has exported Guar gum products of 70,774 crore Indian rupees from Year 2011-12 to current financial year 2018-19. This is only export revenue. Beside this industry is also generating revenue in domestic market. 

As per market information and input from farmers, it is expected that guar seed production will remain lower than previous years. Marketmen are estimating that production of guar seed will remains around 50-60 Bags. Poor climate and weather condition has destroyed the crop in many patches.  Rainfall is uneven and poor in Guar growing belt. Crops is wilting due to water scarcity. In day times leaves of plants shrinks. There is poor water arrival in irrigated guar growing belt of Ganganagar and Hanumangarh. 

Market is taking speculative movements. Export of guar gum is higher than previous year for the same period. Crude oil prices are increasing regularly. Demand of guar gum is also increasing. Guar market is under pressure from speculative movements without any strong fundamental. Rupee is also falling against the dollar. All the international shipping charges are paid in USD, so the importer/exporter will have to pay more money for shipping.  

Speculators are cutting the upper position in guar seed and guar gum in NCDEX. It is putting pressure on local market. There is 60-90 days gap in arrival of fresh guar crop in market. Farmers and traders should not come under pressure from selling pressure in NCDEX. It is time to keep guar commodity out from NCDEX. Since guar is produced only in one reason so it is very easy to manipulate the data and track the movement between NCDEX and Physical market. Speculative people swap the margin by tracking and spreading the information. This platform also gives a leverage to importer over exporter in negotiation of prices. Farmer, processor, exporter and traders; whop are real stakeholders in this guar industry, goes in loss due to speculations and profit swapping.  Some where it is hurting the international trade.

Stability in current Guar seed and Guar gum prices due to prediction of poor rainfall.

There is cloudy weather in this week, there are also news of some rainfall in few places in guar rowing belt. Due to this improvement in guar cultivation conditions, prices of guar seed and gaur gum crashed in this weak. All the stake holders are worried about the future movement of guar seed and guar gum prices.   Since it is cropping period, so prices will keep flactuating with the different climatic conditions.  As per reports current ongoing rainfall are not enough, ether it is scattered, or it is very low.

There are also news that Guar cultivation data released by Rajasthan govt is near to target of 35,00,000 hectare guar cultivation.  As per recent statistic till 24/08/2018 there is guar seed cultivation on 30,65,000 Hectare area. There are no more chances further increase in this figure as sowing of gaur has almost completed. Currently lower side of guar seed is strong in local market. Price will again move in upward direction. There are four months to come the new crop. There are buyer in physical market at current prices. Crude oil prices are also increasing in international market.

Last week group of guar stake holders did a field visit in Guar growing belt from Jaipur, to Sikar, Churu, Hnaumangarh, Shri Ganganagr, Sirsa, Hisar, Bhiwani, Jhunjhanu Districts. It was observed that Guar crop was not good in rain-fed area, plants were very small there was immediate requirement of rainfall. Height was not more that 1.5 feet. Biological growth of plants was also poor. In some farms there was attack of bacterial blight and Alternaria leaf spot. In irrigated area specially Hanumangarh, Ganganagar situation was also poor. There is shortage of water in canal.  Many of guar farm in irrigated belt were under rain-fed agriculture practices. Damage was also noted in some irrigated belt in rain-fed Guar. Crop wilting due to low moisture in soil and environment.  Some news paper have also published the report of crop damage. As per an early estimated this guar production should be around 50-60 lac bags of 100 kg each.

Guar seed and Guar gum prices are strong in the local markets. Market prices of Guar seed and Guar gum are quoted higher than NCDEX. Forward trading of Guar seed and Guar gum is also strong with buying demand and poor rainfall in guar cultivation area. Good quality of guar seed is traded at Rs 4200/100 Kg and average quality guar seed is traded at Rs 4100/100 Kg. Standard quality guar gum is traded at Rs 9000/100 kg. In interior location, guar seed is traded up to 4000/100 Kg. Guar seed is being traded strongly in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is traded at Rs 4610, 4641 higher by 0.62 percent or INR 55/100 Kg, 0.62 percent or INR 56/100 Kg with open interest of 61305, 3950 for October and November month contracts.

Guar gum is also traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is traded at Rs 4183, 4215 higher by 0.19% percent or Rs 8/100Kg, 0.26 percent or Rs 11/100 with an open interest of 103800, 8570 for October and November month contracts.

Poor rainfall in rainfed area and Guar seed & Guar gum prices.

As per field reports coming from Guar gum seed growing belt , Monsoon rainfall is very poor in rainfed guar growing belt. Fresh sowing of guar seed crop has been almost stopped. Biological growth of guar seed crop which was sown in first arrival of monsoon; has been stopped. Guar gum seed crop standing in rainfed area is showing the symptoms of water stress. Framers are worried about the poor condition of guar gum seed crops and low rainfall. If the subsequent rainfall doesn’t comes in next 9-10 days then there are chances that there will be damage in guar crop on large area.

As per report on “Crop with sown area” released by Joint Director Agriculture Statistics, Government of Rajasthan, till 16/08/2018; 78% sowing of Guar seed has been completed against the target decided by Agriculture department. As per this report Guar seed has been sown on 27,31,000 Hectare area in Rajasthan. If there is no rainfall, then there will be no further improvement in this figure of guar gum seed crop sowing. This year agriculture department targeted guar gum seed sowing 35,00,000 Hectare area. Last year there was sowing of Guar on 28,26,000 Hectare area during the same period. 

As per an estimate for this year farmers and traders are expecting that if the climatic conditions remain same as on till date then there will be production of 50,00,000 bags of guar gum seed maximum. Currently there are no chances in improvement of climatic conditions. Guar gum seed cultivation districts are facing the rainfall deficit.

In repeating guar growing belt ; attack of bacterial blight has been observed. Belt of Churu, Hanumangarh and Bikaner are affected with bacterial blight in guar gm seed crop, as farmers are repeating the Guar gum seed crop on same land. Generally, these types of problem are observed if farmers are not following proper crop rotation or proper seed treatment before guar gum seed sowing.

As per field report guar gum seed will give good return on current rates and guar gum seed prices may will touch Rs 5000/100Kg. If climatic conditions worsen further, then prices may go above 5000 and more. As per export data export of guar gum is higher then previous year till date. If the demand of guar gum rise with increasing crude oil prices. Then Guar seed prices will boost in local market. 

Both Guar seed and Guar gum prices are strong in the local physical markets. Market prices of Guar seed and Guar gum are quoted higher than Commodity exchange NCDEX. Forward tarding trading of Guar seed and Guar gum is also expected to remain high with buying demand and poor rainfall in cultivation period. Good quality of guar seed is traded at Rs 4600/100Kg and average quality guar seed is traded at Rs 4500/100 Kg. Standard quality guar gum is traded at Rs 9900/100 kg. In interior location, guar seed is traded up to 4300/100 Kg. guar seed is being traded strongly in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is traded at Rs 4610, 4641 higher by 3.17 percent or INR 141/100 Kg, 3.1 percent or INR 139.5/100 Kg with open interest of 111620, 7890 for October and November month contracts.

Guar gum is also traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT is traded at Rs 9930, 9998 higher by 3.2% percent or Rs 308/100Kg, 3.99 percent or Rs 384/100, 2.47 percent or Rs 247/100 with an open interest of 63660, 3050, 20 for October, November and December month contracts.

65% Guar seed sowing has completed as per targeted area in Rajasthan.

As per latest statistics released by Agriculture Department, Rajasthan, 65% sowing of Guar seed has completed till 24th July 2018 against target decided by Govt. This year govt targeted Guar cultivation on 35,00,000 Hectare area. Till 24thJuly,2018 Guar seed sowing has been completed on 22,92,000 Hectare area.

As per reports Guar sowing in irrigated area has been completed. Farmers will not go for late sowing as guar crop will be not mature on time and Rabi crop will be delayed. There can be some fresh guar crop sowing in the rainfed area after rainfall. As per the report, it is observed that rainfall is not regular in the rainfed area where Guar was grown in an early stage. The growth of guar plant is not good due to uneven rainfall. Currently, there are no forward contracts on NCDEX for next two months. Next delivery contract is for October month.

It is last time of guar seed-sowing season. There will be many up and down in the cultivation period. The guar seed and guar gum prices will keep fluctuating with the climatic and weather conditions. Due to higher MSP of Kharif Pules, Soybean and Bajra, farmers are showing the lesser interest in Guar sowing. Farmers belong to only traditional Guar growing region are going for guar sowing. There is no interest of farmers in Guar crop sowing from the new area in irrigated regions. It is expected that sowing of Gaur will remain lower than in previous years. If the prices remain low at this time then it will be good for rest of year as farmers will show lesser interest in guar sowing. 

Guar Churi and Guar Korma are still giving very good support to Guar prices at the lower side. If the sowing of Guar remains around 30,00,000 Hectares, then it will give the boost to guar prices. If it crosses the targets of 35,00,000 Hectares, then it will be an indication of the increase in guar supply after harvesting.

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.

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.