The prices of guar seed and guar gum were slipped during last days. Today guar seed and guar gum prices have shown the recovery during the budget speech. The new interim budget is focused on value addition of the agriculture produce. In this budget the allocation of the funds for the Agriculture and farmers welfare ministry is Rs 2,000 Crore higher than the previous year. This year Finance Ministry has allocated Rs1,17,529 Crore budget for Agriculture and Farmers Welfare Ministry. Last year there was allocation of the Rs 1,16,789 Crore.
Guar gum export from India is mainly done in split form or powder form. Both the form of guar exported are in almost raw form. Importing countries are doing the value addition and selling guar products at ten time higher price. The stake holder of guar gum industry should understand it. Since India is main producer of guar seed and guar gum in world, so the maximum value addition work must be done in India only. Investment in R&D will require, in developing the new value addition products. After that the R&D must lead to patented product and process.
Though central Govt has presented the budget, but it is interim budget. Generally full budget is meant for the long term policies. But this budget has given understanding that govt is now focusing on value addition. Guar requires a lot of R&D and value addition. India is leader in guar gum seed production, guar gum processing and Guar gum export but it is tacking behind in value addition and R&D. Prices of guar may try to stabilize at current level.
Currently crude oil is strong and it expected that demand of crude oil may also increase in coming future. Currently Brent crude oil is being traded ar Rs 78.93 USD/Barrrel, and WTI crude oil is being traded at USD73.82 USD/barrel.
Guar seed and Guar gum prices are stable in the local physical markets. Prices of Guar seed and Guar gum are quoted lower than Commodity exchanges NCDEX. Future trading of Guar seed and Guar gum is also expected to remain stable due to no business at current levels. Good quality of guar seed is traded at Rs 5250/100Kg and average quality guar seed is traded at Rs 4800/100 Kg. Standard quality guar gum is traded at Rs 10200/100 kg. In interior location, guar seed is traded up to 4700-4800/100 Kg. Guar seed is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is traded at Rs 5312, 5370 higher by 0.04 percent or Rs 2/100Kg, 0.06 percent or Rs 3/100 Kg with an open interest of 49385, 42155 for Feb and March 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 10130, 10287 higher by 0.65 percent or Rs 65/100Kg, 0.71 percent or Rs 73/100 Kg with an open interest of 28760, 29615 for Feb and March month contracts.
