Guargum, seed price surge: FMC set to impose Rs 100-cr penalty on cartel

The Forward Markets Commission (FMC) is set to impose a penalty of Rs 100 crore on a cartel which has been found to be behind the surge in guarseed and guargum prices on futures exchanges to record high last year. Guargum prices had soared to over Rs 1 lakh a quintal and guarseed to over Rs 30,000 in March last year, forcing the commission, which regulates commodities markets in the country, to suspend futures in both.

An official of the FMC said that the Government will be taking action based on a report submitted to the Consumer Affairs Ministry in October last year, on the unusual price movement.

The report had found fault with at least 45 traders.

Responding to question on the report, the official, who did not wish to be identified, said: “The Government is taking action on the report. Notices have been issued and soon, Rs 100 crore penalty will be imposed on the cartel found to be behind this.” The official, however, refused to provide details of the cartel. In May last year, the FMC penalised nine commodity brokerages, including Angel Commodities, Kotak Commodities, Reliance Commodities and Karvy Comtrade, for violating rules in collecting margin money from traders punting on guar gum futures.  Guar or cluster beans, a leguminous crop, is primarily grown in Rajasthan, besides Haryana, Punjab, Gujarat and Madhya Pradesh. Rajasthan accounts for over 70 per cent of the total crop in the country. 

Guarseed is a raw material for producing guar gum.

Guar gum is used as a thickening agent and additive in food products such as instant soups, sauces, processed meat products, baked goods, milk and cheese products, yoghurt and ice-creams. It has industrial applications in the paper and textile sectors, ore flotation, explosives manufacture and fracturing of oil and gas formations.

Currently, guar gum is in demand for fracking of shale gas, particularly in the US that accounts for 25 per cent of the world trade. Guarseed and guar gum prices had run to record high early last year despite the FMC imposing additional margins; investors had to payat least Rs 15 lakh to take positions in guar gum.

Then, investors had justified the surge, pointing out to Government data on exports of guar gum. Initially, the data showed 70 per cent increase in guar gum exports in the first half of 2011-12 fiscal. The data wererevised later by the Government since the industry pointed out that the crop figures and export data of guar gum didn’t match. Meanwhile, prices of guarseed and guar gum which began to rise early this month on reports of dryness in the growing areas have dropped by 25 per cent on Tuesday. This follows the FMC directive to the futures exchanges to scrutinise the sudden spurtfrom August 12.

On Sunday, the FMC Chairman Ramesh Abhishek said on the sidelines of a meet in Mumbai that prices of guarseed and guar gum futures, which resumed in May this year, have begun to drop after he asked the futures exchanges to probe the accounts of their top 25 clients.

“We sought details on hedgers, buyers and sellers in guar (seed and gum) within 15 days. A big cartel seems to be funding the rise through some participants. We have asked exchanges to try and find out the source of funds from these participants. The exchange will penalise the members found guilty,” the chairman said.

Guarseed and guargum futures resumed from May 14, following the commission’s go-ahead.

Guarseed contracts, which are to be delivered in October, opened at Rs 7,730 a quintal on May 14 and dropped to Rs 4,040 on August 12 on speculation that guar production could be a record this year on bountiful monsoon rains. Guar gum contracts for the same month during the same time, dropped to Rs 11,430 a quintal from Rs 24,500.

On September 12, guarseed prices rose to Rs 7,963 and guar gum to Rs 22,380 after which the commission sought details. On Tuesday ( 24/9/2013), guaraseed contracts dropped to Rs 5,990 a quintal and guargum contracts to Rs 16,900.

As on following Link

                     

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/guargum-seed-price-surge-fmc-set-to-impose-rs-100cr-penalty-on-cartel/article5164488.ece?ref=wl_industry-and-economy

Guar Gum Emerged as major water treatment chemical.

Guar Gum powder has emerged as major water treatment chemical. The water pollution is increasing  day day by day.  The treatment of urban waste water has emerged major problem for the urban localities. Many govt has made the provision to treat the water before discharge it into the water bodies.

The fresh water sources are declining day by day. Polluted water create a lot of problems and disease  when it is consumed.  Guar gum is safe and natural ingredient which is environment friendly. regulatory bodies are putting pressure. Teh demand of guar gum will be boost throughout the world for water treatment application.

MCX launches futures trading in guar seed and guar gum

MCX launches futures trading in guar seed and guar gum

The trading unit of the guar seed and guar gum is 1 metric tonne each and price quote for the contracts is ex-warehouse Jodhpur, inclusive of sales tax/VAT. The basic delivery centre for both the contracts is Jodhpur and additional delivery centres include Bikaner, Nokha, Sri Ganganagar, Hanumangarh and Barmer in Rajasthan, Deesa in Gujarat, and Adampur and Sirsa in Haryana

Multi Commodity Exchange of India (MCX) will commence futures trading in guar seed and guar gum contracts from today (14 May 2013). The commodity markets regulator, Forward Markets Commission (FMC), has given approval for trading in guar seed and guar gum June 2013, July 2013, October 2013 and November 2013 contracts in order to facilitate price discovery and price risk management in the guar complex.

The trading unit of the guar seed and guar gum is 1 MT (metric tonne) each and price quote for the contracts is ex-warehouse Jodhpur, inclusive of sales tax/VAT. These are compulsory delivery contracts with Staggered Delivery Tender Period for the last 15 days. The physical delivery would be available in multiples of 1 MT for both guar seed and guar gum. The basic delivery centre for both the contracts is Jodhpur and additional delivery centres include Bikaner, Nokha, Sri Ganganagar, Hanumangarh and Barmer in Rajasthan, Deesa in Gujarat, and Adampur and Sirsa in Haryana.

Tick size for both guar seed and guar gum contracts is Re1 per 100 kg. The initial margin required to trade is 10% or based on SPAN, whichever is higher. As an additional risk management measure, pre-defined special margins are included in the contract. The special margin of 10%, which is over and above the initial margin, will be imposed if prices rise by more than 20%. Further, for every 10% rise in prices, the special margin charged will also increase by 10%. Additionally, if prices increase by more than 50% in the June and July expiry contracts, a special margin of 70% will be imposed. 

The guar seed and guar gum open position limits for a member collectively for all clients is 12,000 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 2,400 MT. The near month limits shall be applicable for 20 days prior to expiry of the contract. The near month limit for a member collectively for all clients is 4,000 MT or 15% of the market wide open position, whichever is higher and for individual clients it is 800 MT. The position limits shall be applicable for all contracts traded on all exchanges.

The guar gum open position limits for a member collectively for all clients is 3,000 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 1,000 MT. The near month limits shall be applicable for 20 days prior to expiry of the contract. The near month limit for a member collectively for all clients is 600 MT or 15% of the market wide open position, whichever is higher, and for individual clients it is 200 MT. The position limits shall be applicable for all contracts traded on all exchanges.

with courtesy www,moneylife.com

http://www.moneylife.in/article/mcx-launches-futures-trading-in-guar-seed-and-guar-gum/32671.html

Nutrient Management for Guar Crop

Nutrient Management for Guar Crop

Even guar can be cultivated in any type of the cultivated land. It will give return even in poor nutrient soil/ low fertile soil.

Guar crop needs 10-12 tonnes of well decomposed farmyard manure, especially when it is being cultivated on poor sandy soils, or after taking an exhausting crop. This well decomposed manure is applied a month before sowing.

If some one want to go for the commercial cultivation of Guar , and want to take the good production. In that condition he can do the nutrient management by application of the fertilizers.

Nitrogenous fertilizers are applied only in small quantity (about 20 kg of nitrogen) because most of nitrogen to the crop comes from the atmosphere through bacterial action. Phosphatic fertilizers about 60 kg, potassic 20 kg per hectare along with 20 kg of nitrogen are applied as basal dose as the time of sowing, with the help of pora just 4 -5 cm below the seed. Spray the crop with 0.15% solution of sodium molybdate after 30 days of sowing after the seedling emergence increases the yield of both fodder and grain.

How to sell the Guar Seed ( Guar Gum ) ??

Buyer for the Guar crop is not a problem. The crop is farmer friendly crop you need not to sell out in the open market if you dont have sufficient quantity to sell out ( truck load). Just grind it and give the feed to cattles after cooking in water. This is highly nutritive concentrate. Of five six farmer can make a group with the sufficient quantity to sell out. negotiate the rate. IF the commodity will start to come in grain market the buyer will start to buy this from the farmer. might be the it will take a time in regular trend. But it will develop. I am giving assurance just load the material any transport the charge will not come ore than 6-7 Rs /kg. farmer can sell to me. Till the regular purchase start in the local market.

This is not a product which is used in one industry . It is used in more than 10 different different industries. food processing, food preservation, printing, radioactive, petroleum, paper industry.

Yes for a beginner it will require some extra affords . But the crop will give return. the basic fact is that cost of cultivation is very low, so the rate of return is very high..

Importance of Guar Crop

There are two strong base behind the Guar crop. First the cost of cultivation of Guar crop is very low. Another, there is no any natural alternate/substitute of this crop as industrial input. If it is not making the farmer rich at the worst side, the same time it is also not making the farmer poorer. IF you go for a high investment crop. First the cost of cultivation will be very high if the crop doesn't give you return, then it will push some one in credit, ultimately it will make the farmer poorer.

Guar is very good crop for the

Soil improvement,

Low investment,

Nitrogen fixation, 

Drought resistant, 

Cash crop, 

No insect pest attack in storage,

Green vegetable, 

Green manure, 

Short duration, 

Good quality Fodder,

Concentrate for milking cattle,

High return

Monopoly of India in production.

Guar ( Gum ) Cultivation and Its Importance.

Guar ( Gum) Cultivation is the one of the hot topic to be discuss among the farmers, traders, exporters. Guar is a rainfed crop, which is being cultivated in Rajasthan ( India) and Neighboring Pakistan. In the Year 2012 the guar commodity and its derivatives seen an unexpected price rise which was ten time more than the regular price. The crop became popular throughout the world. Guar seed and Guar gum was an attraction for rest of the world.

People find a close relationship between Guar and Energy. The Guar gum powder is used as thickener agent or gelling agent in the hydraulic fracturing process to develop the oil field for the natural gas released from the shale formation.

The sudden price rise was a imbalance in between the demand and supply. The oil field service provider company deviated from the regular process of guar gum demand and started to give the bulk order to the manufacturer and stocking the guar gum powder as annual stock. Guar gum is a rain fed crop and grown in the defined area, which is easy to manipulate. The forward market worked as fuel in fire the forward contracts were going up and up. The prices in spot market also increased in the same way of forward market. The speculation and stocking activity made it more explosive. When the things were not in control govt immediately put ban on the forward trading of the Guar Gum.

Guar, Guar Gum, Gum Guar became favorite topic to discuss among the farmers. The major focus was on gaur cultivation or Guar gum cultivation or Gum Guar cultivation. There was no any depth research on Guar by the agriculture universities or research institutes.

Guar is a normal rainfed crop which is grown in the summer season. It require moisture in environment and well drainage soil for the cultivation. Normally it can be grown in the temperature range of 22-45 degree Centigrade. Mostly the crop are taken in two seasons March to May and June to October.

Normally it is grown on rainwater but if there is no rain at time it is advised to give irrigation. Normally it require 3-4 irrigation for the complete crop cycle. Please avoid the problematic water.

There are several varieties available in market but all the varieties are selection varieties only. You can choose any variety as per your requirement like vegetable purpose, standing varieties, maturity time, high yielding varieties. some famous varieties are RGC 1002, RGC1066, HG-365, RGC-936, RGC-986. These varieties are developed by the Govt Institutes. Other than the above some privates companies are also selling there seeds Normally farmers use the produce of the last crops as seeds.  it require around 16-20 kg seeds per hactacre.

Normally the crop mature with in 90-120 days, it depends on different factors like variety, climatic condition, water availability. It doesn't require the Nitrogen as fertilizer, the application of phosphate is considered good for the yield.

The crop mature in the month of October November, which can be harvested after drying the crop or let the crop dry after harvesting. Bacterial Blight and Root rot are major disease which can cause loss in the crop.

In the Normal condition crop gives production around 15-18 Qt/ Hactare.

Though Gaur is a rain fed crop but with the help of advance agriculture practices. We can take good production

Guar is also used a fodder crop. The fodder of Gaur is nutritive in nature. The crop is also used as green pod production which is used as green vegetable. The crop also improves the soil condition. The crop is also used as green manure to improve the soil fertility.

There is no any severe attack of the Insect Pest on the storage guar. It can be easily stored for two three year with any insect pest management.

The gaur seeds are used for processing of Gaur Split and Guar gum. The gaur gum is used in various industries in different form. The by product of the gaur gum industries is used as cattle feed.  The by product like Guar Korma and Guar Meal are Rich in the Protein and good for the cattle feed.

Indian Guar ( Guar Seed) Market

Indian Guar Market

 India has been a major player in the context of guar and guar gum in the global market.

 India’s production contributes to 80% of the world’s total production figuring up to 6 lakh tons.

 Rajasthan wholly retains the credit for India’s position producing 70% of the production itself.

 Guar is largely consumed as a vegetable in the Indian subcontinent. It is also used in making pickles.

 25000 tons of the total production in the country constitutes to the domestic market.

 Guar gum has a vast range of industrial applications and the major share of demand comes from various industrial sectors only.

 India is the leading net exporter of guar seeds and guar gum. The country exports over 117000 tons of guar and its derivatives, which is comprised by 33000 tons of refined split guar gum, and 84000 tons of treated and pulverized guar gum.

 The net worth of the Indian exports is estimated over Rs 5000 crores.

 The production list of guar is dominated by India as a leading producer of this crop. The consumption pattern of guar seeds is largely influenced by the demands from the petroleum industry of United States of America and the oil fields in the Middle East as the derivative products of these seeds are quite useful in the petroleum drilling industries.

 United States alone constitute to around 40 thousand tons of guar and its derivatives demand.


Also, in rest of the world, the trend of consumption has increased with time that has lead to the introduction of this crop in many countries

Guar Seed( Guar Gum ) Cultivation : harvesting period & Seasonality

Guar Seed (Guar Gum ) harvesting period

A growing season of guar is 14 to 16 weeks and requires reasonably warm weather and moderate flashing rainfall with plenty of sunshine. Too much rain can cause the plant to become more 'leafy' resulting thereby reducing the number of pods or the number of seeds per pod which affects the size and yield of seeds. The crop is generally sown after the monsoon rainfall in the second half of July to early August and is harvested in late October early November. The Guar is a naturally rain fed crop. Depending on the monsoon rainfall the total size of Guar crop varies from year to year. After harvesting, when the pods become dry through sunlight, they are beaten off and during this process, the seeds come out of the pods.

Seasonality

The seed is normally sown during the second half of July to August after the monsoon rainfall starts, and harvested during October and November. The crop requires 3-4 spells of rain during seed setting and maturing, which is during September first week and the end of September.

Guar Seed ( Guar Gum) Cultivation : A useful crop cultivation

Guar Seed ( Guar Gum) Cultivation

Guar is the crop of the rain fed location. It does not mean that it will not require any take care. It will give very good result in the irrigated conditions. One can start the Guar cultivation in the low irrigation or rain fed condition. It is a normal crop which can be cultivated easily. Every stage and part of the plant is equally important. With a minimum guidance a normal farmer can grow it. After the sowing it need the proper weeding. As per the current market rate of the Guar. It is giving very good return to the farmers. This year the farmers of Rajasthan has enjoyed the Guar seed rate Rs 37,000/Quintal. There should not be the water logging condition in the farm. There should not be cloudy weather at the time of the crop maturity stage.

It can be used as fodder for cattle.

It can be used as green vegetable.

It can be used as green Manure.

It can be used as cash crop

It can be stored in any dry condition

It doesn't attract the insect pests. 

We provide complete details free of cost for the guar cultivation..I would suggest farmer community to use Guar as Crop cycle not for the finical terms. It will improve the soil health..

Method of sowing of Guar ( Guar Gum ) Crop

Traditionally guar crop is sown by the broadcast method. Normally it is called "CHHIDAKA". If you want to go for broadcast method, then there must be sufficient soil moisture during the beginning of the rainy season. The field is roughly divided into long stripes of convenient size. The seed is evenly spread by hands over the surface of the field, while walking through the long stripes of the field. The field is ploughed after spreading the seed. 

This method does not ensure proper spacing and creates problems while hoeing, weeding and removing excessive rain water.

The grower will also face problems in the intercultural operations.

Line sowing with the help of tractors by seed-drill is useful in sowing. We can maintain the proper spacing and depth. This results in better seed germination. Line sowing is also useful for carrying out hoeing-weeding and removing excessive rain water.

In some area Guar is taken as mixed cropping the seeds are mixed with other crop. Normally in the Western Rajasthan it is taken with Bajara and Jwaar. The seed of pulses like Mung( green gram), chickpea is also mixed. 

It can be also used as inter-cropping with clear separate row between other crop rows.

Benefit of Guar ( Guar Gum) Crop for farmers

There are two strong base behind the Guar crop. First the cost of cultivation of Guar crop is very low. Another, there is no any natural alternate/substitute of this crop as industrial input. If it is not making the farmer rich at the worst side, the same time it is also not making the farmer poorer. IF you go for a high investment crop. First the cost of cultivation will be very high if the crop doesn't give you return, then it will push some one in credit, ultimately it will make the farmer poorer.

Guar is very good crop for the

Soil improvement,

Low investment,

Nitrogen fixation, 

Drought resistant, 

Cash crop, 

No insect pest attack in storage,

Green vegetable, 

Green manure, 

Short duration, 

Good quality Fodder,

Concentrate for milking cattle,

High return

Monopoly on India in production.

And Much More............

Seed Treatment of Guar seed with bacterial culture

Guar plant develops, nodules on its roots, in which a special kind of bacteria live and convert the free nitrogen of the atmosphere into a form of fertilizer which is absorbed by the roots of the plant.

This symbiotic relation of the bacteria and root nodules is useful in saving cost of nitrogenous fertilizers. Therefore, before sowing the seeds are inoculated with these bacteria so that their population increases in the soil, with the growth of the plant. This is done by preparing a 10% sugar or gur solution in boiling water. This sugar solution is allowed to cool. 

On cooling 3 -4 packets of guar bacterial culture are mixed with solution to make a thin paste. This paste is coated over to the seed. Seed is dried under shade for 30 -40 minutes before sowing.

Seed treatment for Guar Crop Cultivation

Normally Guar is cultivated in the Rainfed area of western Rajasthan, South Punjab and west Haryana. but in the humid areas, where there are more chances of disease out-break, seeds are treated in the following ways.

i. Dry seed is coated with Ceresan or Thiram at the rate of 3 gm fungicide per kilogram of seed to kill the spores of fungus resting on the seed coat.

ii. Seed is immersed in hot water at 56 C for 10 minutes and then dried at room temperature before sowing. This kills all the fungus mycelium and inactivates their spores to spread disease in the crop. This treatment must be done under the supervision of expert . 

iii to remove the diseased and unhealthy plants by putting it in the salty water the light , small and diseased seed will come on the surface. then after washout the seed and dry them under shadow.

Seed rate of Guar Crop.

Seed rate of Guar Crop.

Seed rate of guar crop varies from 20 kg to 40 kg per hectare depending upon soil moisture and spacing. About 20 kg seed per hectare is sufficient for grain crop. Seed rate for crops grown for fodder or green manuring is about 40 kg per hectare. Seed rate is normally increased under late sown condition, dry condition, and soil salinity or alkalinity conditions. In dough condition the seed rate can be increased, so that at the time of the weeding we can remove the diseased or unhealthy or abnormal plant.

Spacing In The Guar Crop

Spacing In The Guar Crop

A spacing of 45 cm between rows and 15 cm, between plants is given for crops grown for grain production. However, spacing is generally reduced under late sowing and poor soil fertility conditions. Closer spacing of 30 X 12 cm is provided for fodder crop. A wider spacing of 60 X 30 cm is desirable for crops grown for green vegetable pod production. In some are Guar crop is taken as inter cropping. On that condition we can use the single row of Guar crop between two or three row of another crop.

Guar Seed ( Guar Gum) Time of sowing

Summer crop of guar in northern India is sown in March, while kharif crop in June. For grain crop, the best time of sowing is during July. Early sowings result in more vegetative growth, lodging and loss of yield. The best sowing time for fodder crop is April. In Peninsular India, guar is sown in September. In South India, it is sown at any time between February to October. Guar sowing time is adjusted to May-June to increase supply of vegetable pods. Crop sown in June in Haryana and in July in Punjab gives better production of vegetable pods.

One can go for the guar crop as green manure purpose. More than 2 month old crop is plough back in the soil. The germination does'nt take place properly in low temperature.

How to prepare the Land for the Guar Crop cultivation ? ?

How to prepare the Land for the Guar Crop cultivation.

Guar crop requires a well prepared field, with adequate soil moisture for its seed germination. During early growth period, soil aeration encourages root development and bacterial growth. Therefore, field should be ploughed to fine tilth by giving two or three deep ploughing with soil-turning plough, followed by harrowing and planking. The field should be free from weeds and other crop residues. Arrangements for drainage channel-cum-water channel for heavy rain- fall areas or irrigated areas should be made while preparing the field. The farm yard manure should be mixed with soil at the time of last ploughing. You can cultivate Guar in any type of the soil . Please avoid the water logging condition. It will also improve the soil. It is a leguminous crop so the it will help full for the nitrogen fixation in the soil.

Guar Seed (Guar Gum) Cultivation Consultancy

We provide the complete solution in the Guar seed (Guar Gum) cultivation. As per the commodity trend Guar has shown excellent results. Last month it was being sold at rs Rs 30,000/Quintal. The guar gum is used in many industries as a base product. the crop has bright future. Please contact us for the guar cultivation. We provide complete solution and consultancy for the guar cultivation. this is best time for the guar sowing.

GUAR SEED ( GUAR GUM) / CLUSTER BEAN CULTIVATION IN MAHARSHTRA

You can cultivate it in Maharashtra. The crop can be cultivate easily. Make sure that there no water logging condition. Infestation of weeds must be minimum. you can go with inter cropping, but i will suggest to go as single crop. if you keep the row to row distance 45 cm ( 1.5 feet ) then it will be more appropriate. Manson time is the best the temperature at the time of seed germination should not be less that 22 degree centigrade.. at the time of harvesting the weather should be clear and cloud free.