Guar gum demand will remain strong in last quarter 2018-19

Guar gum demand will remain strong than previous year. India has exported 3,30,978 MT guar gum by the end of October month. Guar is major exportable farm commodity form India. Major demand of Guar arises from Oil and natural Gas industry. Crop is cultivated from June to October and major arrival of crop starts to come from October to January. This year production of Guar seed as lower than was previous year. As per the Agriculture Department of Govt of, This year guar seed was cultivated on 34,18,000 Hactare area. As per market man average Yield of Guar seed in Rajasthan is around 250 Kg / hectare. As per these inputs Total production of Guar will be between 80,00,000 – 90,00,000 Bags. 

Guar gum is used in the oil drilling activities in USA. As per the baker hudge rig count Oil drilling activities are increasing in USA. Currently 1075 oil rigs are active in USA. Which are 151 more than the previous year. Shel oil production is increasing in USA. Demand of heating oil and Gas remains high in Cold countries of northern globe. Shale oil and gas production will increase in USA and Canada. Oil and gas exploration in south American countries are increasing and export of Indian guar gum is also increasing in south American countries. 

Guar gum demand will remain strong.

Demand of Indian Guar and Churi Korma is also high from China due to trade ware between China and USA. Prices and Demand of Churi Korma is high in market. There is 48-52 % protein content in Guar Churi Korma. Guar protein is used as substitute of Soya meal and Soya protein. 

Guar seed and Guar gum commodities are being quoted strong in physical markets due to strong export demand of guar gum. Prices of Guar seed and Guar gum both are quoted higher then previous close. Forward price of Guar seed and Guar gum are also strong due to buying at lower levels in local markets. Bold quality of guar seed is traded at Rs 4400/100Kg and average quality guar seed is traded at Rs 4300/100 Kg. Standard quality guar gum is traded at Rs 8650/100 kg. In interior location, guar seed is traded up to 4200/100 Kg. Guar seed is being traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) guar seed-10MT is closed at Rs 4348, 4394, 4445 higher by 0.24 percent or INR 10.5/100 Kg, 0.26 percent or INR 11.5/100 Kg, 0.58 percent or INR 25.5/100 Kg with open interest of 45160, 87190, 4730 for January, February and March month contracts. 

Guar gum is being also traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT closed at Rs 8608, 8718, 8810 higher by 0.34 percent or Rs 29/100Kg, 0.5 percent or Rs 43/100Kg, 1.33 percent or Rs 116/100 Kg with an open interest of 11675, 65050, 980 for January February and March month contracts.

8923 MT more guar gum has exported from April-2018 to Nov-2018 than previous year.

As per the data released by the Agricultural and Processed Food Products Export Development Authority (APEDA) Indian has exported 330978 MT guar gum. Values of guar gum export fromApril-2018 to November-2018 is INR 3052 Crore or USD 442 Million at the rate of USD1335 / MT. Previous year during the same period India exported 322055 MT guar gum. Value of exported guar gum powder was INR 2589 Crore or USD 401 Million at the rate of 1246 USD/MT. This is very positive news for Indian guar gum industry. Export of Guar gum powder is increasing continuously since last four years.

Export of Indian guar gum is increasing with increasing oil and gas drilling activities. Shale crude oil and natural gas production is increasing. Traditionally Saudi Arabia was the leader of crude oil production and Qatar was leader of Natural gas production. Now USA has become the new leader of crude oil and Natural Gas production. USA is using fracking / hydraulic fracturing activities for shale oil and gas production. Guar gum powder is used as drilling chemical in this process. USA, Norway, China, Netherland, Russia, UK, Germany, Italy. Argentina are major destination for export of Indian Guar gum. In monetary term India has exported guar gum of 17.93 % more value in Indian rupees and 10.10% more value in USD in comparison to previous year for the same period.

Export of Guar gum from India , Data of 2018-19 is only up to November-2018 ( 8 months) 

                                                                     (Source APEDA- Ministry of Commerce and Industry)

As per existing trends it is estimated that this year quantity of Guar gum export will cross the figure 6,00,000 MT. This will be very positive trend for Indian Guar gum industry and Indian guar gum seed farmers. This year Guar seed production is lower than previous years. As per Baker Hughes Rig Count ,1083 Rigs are active in USA which are 154 more than previous years rig count at the same time. Rig count is as indication of demand of drilling services and chemicals. 

Guar seed and Guar gum commodities are being traded strong on physical markets due to strong export demand of guar gum. Prices of Guar seed and Guar gum both are quoted higher then previous close. Forward price of Guar seed and Guar gum are also strong due to buying at lower levels in local markets. Bold quality of guar seed is traded at Rs 4300/100Kg and average quality guar seed is traded at Rs 4200/100 Kg. Standard quality guar gum is traded at Rs 8400/100 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 is closed at Rs 4350, 4393, 4439 higher by 2.38 percent or INR 101/100 Kg, 2.48 percent or INR 106.5/100 Kg, 2.53 percent or INR 109.5/100 Kg with open interest of 81930, 66230, 1880 for January, February and March month contracts. 

Guar gum is being also traded strong in the future market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum- 5MT closed at Rs 8572, 8669, 8572 higher by 2.99 percent or Rs 249/100Kg, 2.95 percent or Rs 248/100Kg, 0.6 percent or Rs 51/100 Kg with an open interest of 28430, 47375, 330 for January February and March month contracts.

Export of Major Agriculture Commodities from India 2018-19 ( April to November only )