COPY PASTE

Guar Seed and Guar Gum Prices may strengthen with Improving Global Economic Activities

Guar Seed and Guar Gum Prices may strengthen with Improving Global Economic Activities

Strengthening Crude Oil Prices

Crude oil prices are improving in the global market with increasing economic activities. Currently, crude oil is being traded at an eight-week high. The global economy is showing strong signs of improvement. Brent crude oil is being traded at USD 82.43 per barrel, and WTI Crude oil Prices are being traded at USD 77.363 per barrel. Both indicators of crude oil are showing strong signs. Improved crude oil prices will support guar gum prices from their current level. The demand for guar gum is expected to improve. Physical demand for Guar gum will strengthen guar seed and guar gum prices in the local market.

USD and INR Exchange Rate

As the exchange rate of USD is improving, it will carry more cash flow into the market. The demand for guar gum is expected to rise from this level due to increased cash flow. Importers will engage in maximum contracts with the increased cash flow. A weakened rupee will strengthen the current level.

Guar Seed and Guar Gum Prices may strengthen with Improving Global Economic Activities
 
Guar Seed and Guar Gum Prices may strengthen with Improving Global Economic Activities

Guar Production Estimates

As per the data released by the State Government of Rajasthan, the estimated guar seed farming was done on 28,92,840 hectares, and the estimated guar seed production will be 17,48,781 metric tons of guar seed production. Prices are expected to improve with increasing economic activities. Prices will not fall further from this level. There are fewer chances of a downfall in guar seed and guar gum prices.

The current level may yield good returns with a lower risk factor. Physical demand will also increase. In the last 12 months, 8-10 new Guar Gum factories have been established in Rajasthan under different government schemes. Even two plants have been established for modified Guar Gum Powder manufacturing. Modified guar gum is used for premium quality toiletry and cosmetic products.

In the week of January from 22nd January 2023 to 28th January 2023, NCDEX guar seed prices were being traded at INR 5431, 5490 per 100 kg (quintal) with open interest of 65,375 and 25,600 for 20 Feb 2024 and 20th March 2024 contracts. NCDEX guar seed spot price is INR 5454 per quintal. NCDEX guar gum prices are being traded at INR 10546.10695 per 100 kg (quintal) for 20 Feb 2024 and 20th March 2024 contracts with open interest of 43,715 and 14,275. NCDEX guar gum spot price is INR 10719 per quintal. In local physical market yards (Mandi), guar seed prices are quoted at INR 5200 per quintal, and guar gum prices are quoted at INR 10500 per quintal.

Child Labour In Guar Farming and Guar Gum Processing Industry

Child Labour In Guar Farming and Guar Gum Processing Industry

Child labour is major social problem/issue in Agriculture. In some under developed countries child labor is used for the agricultural production/ farming and further process. Some crops are labor intensive and they require extensive labor to complete the agricultural operations. Like paddy plantation, Cotton harvesting, Vegetable farming required bulk labors, Some time labor is not available or costly then child labor is used to complete the operations. Some greedy parents and contractors make a nexus and right of the child are abused, they are used to make more and more money.

About Guar 

Guar is a vegetable crop traditionally grown in western Rajasthan. The Guar farming is also scattered in nearby areas of western Rajasthan, like south Punjab, south west and west Haryana, north west Gujarat and neighboring country Sindh (Pakistan). As per last year crop cultivation data Guar crop is being cultivated on 30,00,000 (3 Million) Hectares of Area. The climatic condition of this region is hot and dry. Guar crop is taken as monsoon crop or rainy period from last of June to Mid of November. 

The opportunity cost of Guar crop farming is almost zero, means farmers take the guar crop as the last option. Either he will leave his farm bran or he will take Guar crop. If the rainfall is good and on time then farmer prefers to take other crops (millets, pulses, oilseed, cereals) instead of Guar crops. As per current conditions around 95%-98% Guar farming is rain fed or based on natural rainfall only. No Artificial irrigation is given to Guar crop. Sometimes farmers give lifesaving irrigation to guar crops if he has extra water or other source of irrigation. Generally the farmers who have irrigation source or irrigation water they go for the other crop over guar crop.


Child Labour In Guar Farming and Guar Gum Processing Industry, Guar , guar gum, guar gum cultivation
Child Labor Foot Prints In Guar Farming and Guar Gum Processing Industry

Labor Required in Guar Farming and Guar Gum processing

Guar is a rain fed crop grown in desert areas. In Desert, the land sizes are very big in comparison to other areas. Mostly guar farms are very big in size. If climatic conditions are favorable then Guar farming faces a lot of labor shortage. There are various stages of guar crop cycle where labor is required to complete the operations like Sowing, weeding, Nutrients application, agrochemical application, Harvesting, Threshing, loading, unloading and transportation. Since the cropping season is the same in entire region so the timing of these operations also remains the same. The requirement of labor used to also increases suddenly at the same time.

Earlier Guar farming was completed by the Animal Drawn equipment and manually. Generally whole family used to engage in guar farming. Every family member used contributes in operation. Even Children were also involved in agricultural operations. Sometime hired labour used to also come with whole family and the child were used to engage in guar farming knowingly or unknowingly. Even these practices are also followed in some backward community and families where the numbers of Children are high. These factors will be discussed later. 

Generally child labours foot prints are not found in guar farming area and guar gum processing industry. The Scenario of child labour foot print has changed now a day. There are various factors that keep the child labour away from Guar farming.

Structure of the Guar plant (Cyamopsis tetragonoloba)

There are minor white transparent spikes on guar plant. These spikes are found on entire plant including stem, leaves, pods and branches. Generally these spikes are very soft at initial stage.  As plant mature and move toward completion of the life cycle. These Spikes become very hard and dry. As it comes in contact of skin then it start itching.  If the skin is soft specially the skin of non-labourer person or Children, then itching hurts hard. They can’t stand or stay in guar farm more than 10-15 minutes if the skin is exposed to guar plant. The itching will keep continue for whole day. Children in guar farming area knows this property and they dotn enter in guar farm. No parent wants that their children should go in Guar farm. Even hired labour doesn’t prefer to do take labour work in Guar farm. The skin of farmers are harder so they feel lesser itching. Even regular guar farmers enter in Guar farm with complete cover. Guar plant itself asks non farmer and children to keep away.

Guar Growing Belt in Rajasthan, Haryana, Punjab, Pakistan

Lesser Number of Children 

Earlier there were more children so a group of children used to go to farms but now the number of children has dropped to 2-3. Due to lesser number is children, Farmers take care their children properly and they don’t want that their children leave their study/school and go to farm with them. Scenario has changed, children goes to school regularly and stay away from working in Guar fields.

Guar Farms are larger in size

Guar Filed are very big in size and production is lower in rain fed farms. Children can’t work in big farms. It required a full capacity labour. Since size of farm is big children can’t work properly and they make more wastage while working. Due to big farm it is very hard to collect all the wastage. When the farms are small or crop is densely cultivated then any one can’t work in field. But in guar farm if unskilled worker work then he makes a lots of losses.

Lesser Farm operations

In guar farming the farming operation is lesser in comparison to other crops. So the requirement of the labor is not frequently. After the sowing labor is required at the time of harvesting. Harvesting can't be completed by the children. Because of the itching caused by the guar plant no one goes to guar farm at the time of harvesting except skilled labors. Even at the time threshing of seeds the duct contains the spikes and no one goes close to threshing sites

Use of Mechanical Agricultural implements 

Earlier farmers used to do the guar farming by manually or animals but now they use tractors and machines. Tractors and machines are more efficient. Even there is shortage of the labor and labor is not efficient in guar farming. For the sowing there are tractors, For agrochemicals there are spray machines, for harvesting there are harvesting machine / combine, for threshing there are threshing machines. Transportation is done by the tractors. The dependence on hired labor is going down day by day.

Guar Growing Belt in Rajasthan, Haryana, Punjab, Pakistan

Automatic Guar Gum Processing plants

Guar seed is first processed to the guar splits. After that they process the guar splits into the guar gum power. Guar gum powder is further processed into some modified guar gum powder. Previously guar processing industry was manual, a lot of labors were required but now things have changed. The plants have turned to fully automatic plants; some plants are PLC based plants. Labor requirements for these processing plants are very low. These plants require only highly skilled professionals. There are no possibilities of child labor foot prints in these guar gum processing plants.

Awareness of community,

Except few backward communities most of guar farmers come from progressions communities. They are all aware about the drawback of child labor. They don't employ the child labor. Guar farming is not a year around job opportunity. People/labor avoid working in guard field. 

Conclusion 

The entire value chain of guar is child labor free. In general no foot print of the child labor is noticed. Generally farmers in Guar growing belt are progressing and they give importance to child education over the labor work. The results of this mind set are also visible. Most of children of these farmers are taking higher education. After the education they prepare for competitive examinations and get selected for the well paid government Jobs.

In some backward religious communities which have more numbers of children due to illiteracy they follow the practices of Child labor the entire farmer's family member keeps working if agricultural farms. This type of under-educated religious community lives in Barmer, Jaisalmer and Jodhpur Districts. Their religious leadership orders them to attend the religious education system. Government and private organizations must create awareness about eradication of child labor in agriculture. 

Prices of Guar Seed and Guar Gum will remain stable in 2024.

After the harvesting of the guar crop, guar seed and guar gum prices aren't moving upwards. Although the market was bullish on guar seed and guar gum prices earlier due to information about lower production and higher demand, guar prices are now stagnating. Farmers, traders, manufacturers, and exporters are all waiting for a price rise for reasonable profit. There can be various factors behind the price movement. According to export data, exports are increasing. As for supply, there is no shortage of guar seed in the market, and production data for guar seed are also positive, showing no decline in production.

Export of Guar Gum

Guar is a major exportable agricultural commodity from India. Guar gum exports directly impact guar seed and guar gum prices. According to data released by the Central Agriculture Ministry, guar gum exports are increasing in the year 2023-24. From April 2023 to October 2023, there has been a 30% increase in export quantity and a 65% increase in export value in USD. These data are available up to October-2023 only. One new data will be released then the new data will be analyzed later on.

S.N.

Month

Quantity ( MT)

Value (USD Million )

1

April-2023

30184

35.14

2

May-2023

35141

40.17

3

June-2023

33744

39.49

4

July-2023

39405

45.50

5

August-2023

42308

51.34

6

September-2023

35528

47.42

7

October-2023

39761

58.02

Export of guar gum from  India 2023 - 2024

Crude oil Prices

According to market reports crude oil prices are falling continuously. Due to storage US storage build the prices have settled 1% lower than previous close. The crude oil inventory has increased in USA. Currently Brent crude oil is being traded around USD 76.80 /Barrel. WTI crude oil is being traded around USD 71.37/Barrel. There are also news that Saudi Arabia will cut the oil prices to its buyers from all regions. Global supply of the crude oil is increasing from USA. Supply of crude oil is smooth in Global market.  Even attacks on Oil shipping tankers by the Houthi “The Yemeni Houthi terrorists” could not interrupt the supply of the crude oil.  Due to falling prices India is also increasing its oil reserves by importing the cheaper crude oil.

Prices of Guar Seed and Guar Gum will remain stable, Guar, guar gum, guar price, guar gum price, guar demand, guar gum demand, guar seed production, guar seed stock, guar seed consumption, guar gum cultivation, guar gum cultivation in india, Guar gum farming, guar gum export from india , guar seed export, guar gum export, guar gum farming, guar gum cultivation consultancy, today guar price, today guar gum price, ग्वार, ग्वार गम, ग्वार मांग, ग्वार गम निर्यात 2018-2019, ग्वार गम निर्यात -2019, ग्वार उत्पादन, ग्वार कीमत, ग्वार गम मांग, Guar Gum, Guar seed, guar , guar gum, guar gum export from india, guar gum export to USA, guar demand USA, guar future price, guar future demand, guar production 2019, guar gum demand 2019, guar, guar gum, cluster beans, guar gum powder, guar gum price, guar gum uses, ncdex guar, guar price, guar gum price today, cyamopsis tetragonoloba, ncdex guar gum price, guar beans, guar rate today
 Prices of Guar Seed and Guar Gum will remain stable in 2024.

Oil Rig Count

Baker Hughes rig count data are also indicating that demand of crude oil is lower. The active oil rigs are lower than previous year. As per the oil rig count data released by Backer Hughes number of active rigs have increased increasing internationally, but in USA the oil rigs are lower than previous year.  In comparison to last year Internationally 955 rigs are active which 55 rigs are, more than the previous active year. In United stated there are 621 rigs active which are 151 rigs lesser than the previous year’s rigs count. There is decline in total active rig count in USA, Canada and Internationally. The Oil and Natural oil gas industry is major demand creator for the Guar gum in international market. 

Global Politics

Many wars are going on internationally but most are confined to specific geographical location. Severity of the wars is very low. There are no escalations on other areas. Israel – Hamas war is about to end very soon. Yemani Houthi terrorist were also supposed to jump in Israel – Hamas war but they limited to attack on nearby coastal area. Russia Ukraine war is also going on slow pace. There are possibilities that US will very soon attack Houthi controlled Yemen to secure the international Trade. Russia - Ukraine war has entered in 686 days. The intensity of war has decreased. No major escalation of war has noticed. 

Parliament Election in India 

Assembly elections were held last year in India in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana. New Governments have formed in these states. Rajasthan is a guar growing state; the new govt will likely impact the guar business in Rajasthan. National parliament elections at central level are pending. These elections will be held in April and May Month. After that new trade policies will be formed and investment will move. Guar Industry requires a lot of investment especially in R&D and processing .

Supply of guar 

Harvesting has completed up to last month so no major arrival is remaining for this year. Now new arrival will come in next season. There is no supply shortage. The market and traders are also not in buying drive. Farmers are carrying their produce to market as per their financial requirements. Prices will not be bullish. The current level will sustain until new demand from oil and natural gas industry doesn’t rise. Entire Kharif crop production is lower due to poor climatic conditions, so Indian agriculture production will remain under pressure of importing of agriculture food / commodities. For Guar prices will remain stable no need to buying the stock or hold for short term gain.

In this week of January, NCDEX guar seed price is being traded at INR 5396, 5460, 5511 / 100 Kg (Quintal) for 19th Jan 2024, 20 Feb 2024 and 20thMarch 2024 contracts. NCDEX guar seed spot price is INR 5405/Quintal. NCDEX guar gum price is being traded INR 10448, 10625, 10766 / 100 Kg (Quintal) for 19th Jan 2024, 20 Feb 2024 and 20thMarch 2024 contracts. NCDEX guar gum spot price is INR 10645/Quintal. In local physical markets (Mandi) guar seed prices is INR 5200/Quintal and guar gum prices is INR 10500/Quintal.

Guar prices will remain stagnant due to poor demand from stagnant oil and natural gas industry

This is peak arrival period and guar gum prices are stagnant in market. Due to crop failure and prediction of lower guar seed production farmers, traders and exporters were expecting the boom in guar seed and guar gum prices. but in market things are not working as per predictions.  

Crude Oil Prices:

As per global predictions, crude oil prices will fall further. OPEC countries have agreed to cut production due to lower demand for crude oil. Demand for crude oil will remain slow as the global economy focuses more on clean energy generation. Policymakers are introducing new environmental emission standards for less polluting industries. Currently, Brent crude oil is being traded around USD 82 per barrel, and WTI crude oil is being traded around USD 75.96 per barrel. Oil prices have come under further pressure after a cut of 684,000 barrels per day by OPEC plus countries. There is also news that Brazil might join the elite group of OPEC plus countries. The oil and natural gas industry is a major buyer of Indian guar gum.

Guar prices will remain stagnant due to poor demand from stagnant oil and natural gas industry
 Guar prices will remain stagnant due to poor demand from stagnant oil and natural gas industry 

Oil Rig Count:

According to the oil rig count data released by Baker Hughes, the number of active rigs is increasing internationally. In comparison to last year, there are 962 active rigs globally, which is 51 more than the previous year. In the United States, there are 622 active rigs, which is 162 rigs fewer than the previous year's count. There is a decline in the total active rig count in the USA, Canada, and internationally. Guar gum is the major drilling chemical used in oil production and new rig development.

Global Instability:

Wars are ongoing between Israel and Hamas, Armenia and Azerbaijan, Ukraine and Russia. There are also instabilities in the entire Middle East, including Syria, Lebanon, Egypt, Iraq, Iran, Yemen, etc. There are some reports of a ceasefire in the Hamas-Israel war for some time, but it is not expected to continue for a longer period. There are chances that the war may escalate in the entire Middle East, with a major concern being a potential USA-Iran war.

Assembly Election in Rajasthan:

Assembly elections have been completed in five states in India, and the results will be declared soon, forming a new government. The fresh policies may influence the further movement of guar prices. However, due to the upcoming Parliament election in April-May, there are fewer chances of new policy implementation by the new government, as time will be consumed in new government formation and allocation of ministries. After that, the Model Code of Conduct will come into existence for parliament elections. Assembly elections in Rajasthan are crucial for the guar market as Rajasthan is a major guar-producing state. Guar is a major agricultural commodity, so it always remains in focus for policymakers.

Harvesting and Arrival of Guar:

Harvesting of guar has been completed, and peak arrival is ongoing. Since November has passed, peak arrival will continue in December. Now, large farmers have started holding the guar seed, and they are not bringing it to the market. Stockists will also finish their stocking activity after December. No major price changes have occurred after the production, indicating that either demand is poor or production is not as low as to create a significant gap in supply and demand. There is no problem in the arrival of guar in the market.

There are no major possibilities of guar seed or guar gum supply shortage. Prices will remain stagnant. Currently, industries, exporters, importers, and stockists are waiting for the new government formation, new agriculture policies, and export policies. Before the arrival of the new crop, a new state government and a new central government will be formed. Once the new government is in place, new financial policies will be announced. If good-quality guar seed is available at reasonable prices, exporters, processors, and stockists must consider stocking it. Farmers should also release/sell their stock slowly.

In this last week of November, NCDEX guar seed prices are being traded at INR 5545, 5712, 5766 per 100 kg (quintal) for 20th December 2023, 19th January 2024, and 20th February 2024 contracts. NCDEX guar seed spot price is INR 5622 per quintal. NCDEX guar gum prices are being traded at INR 11390, 11530 per 100 kg (quintal) for 20th December 2023 and 19th January 2024 contracts. NCDEX guar gum spot price is INR 11428 per quintal. In local physical markets (Mandi), guar seed prices are INR 5500 per quintal, and guar gum prices are INR 11400 per quintal.


Guar Cultivation Area Data Released by the State Government. Demand for Guar Gum Will Also Increase.

The guar cultivation area has decreased. According to data released by different State Governments, the estimated guar seed sowing area is 29,02,732 hectares. This data has been released by the State Governments of Gujarat and Rajasthan. No significant cultivation area has been noticed in Haryana, and the Haryana government has not mentioned guar crop in their advance estimates. 

Guar Cultivation area has fallen 

According to the Rajasthan Government, guar sowing has been done on 27,99,489 hectares, which is 103% of the target sowing area of 27,00,000 hectares. During the previous year, sowing was completed on 30,79,450 hectares, which is 2,80,450 hectares less than the previous year. According to data released by the Gujarat Government, guar has been cultivated on 1,03,243 hectares in Gujarat. During the same period in the previous year, there was guar cultivation on 1,04,081 hectares.

Crop Damage Due to Rainfall at Maturity:

Despite a good guar cultivation sowing area, the rainfall was not sufficient for the maturity of guar crops. Crop damage has been noticed on a large area due to poor rainfall or no rainfall at the maturity stage. Even the quality of guar arriving in the market is not good due to rains after crop harvest.

Guar Cultivation area has fallen

Worsening Geopolitics and an Increase in Disputes:

Geopolitics is at its worst level, with all the continents directly engaged in wars and conflicts. Some of them include Ukraine-Russia, Azerbaijan-Armenia, Israel-Hamas (Palestine), and many other countries like Iran, Turkey, Qatar, Lebanon, and Syria making provocative statements. Due to this worsening geopolitics, the demand for fuel is increasing, and fuel prices are also rising. If a regional war were to erupt, such as Israel-Palestine (Hamas), there are chances that crude oil prices may soar up to USD 160 per barrel.

Increase in Oil Drilling/Fracking Activities

If the prices of crude oil rise, global fracking activities will increase. There will be an increased demand for drilling chemicals, and the export demand for guar gum will rise globally. Besides the USA, European, Chinese, and Russian companies will also explore new drilling fields. Crude oil is crucial for the global economy, and a regional war in the Middle East could lead to interruptions in crude oil supply globally. Indian guar gum powder is primarily consumed by the oil and natural gas industry. Crude oil production activities are on the rise globally, with currently 940 active oil rigs, 61 more than the previous year at the same time.

Guar gum export from India, Guar export from india, guar Churi Korma export from India 2023-2024 data
Guar seed cultivation area Rajasthan from India 2023-2024 data

Drought in Canadian Prairies and Lower Hay Yield

In addition to the demand for crude oil production, the demand for guar protein (Churi Korma) will increase in the cattle/animal feed industry. Due to drought in Canadian prairies, cattle farmers are seeking feed alternatives. Drought and high temperatures have reduced the yield, with this year's hay yield being 40% less than the 10-year average. The meat production sector is trying to adapt to the current situation by switching to alternative feeds like canola by-products, hay, meal, silage, straw, or other available alternatives. Guar meal and guar korma are also good sources of high protein.

Guar seed and Guar gum Market data 

In this week, NCDEX guar seed prices are being traded at INR 5696, 5783, and 5832per 100 kg (quintal) for the contracts expiring on 20th November 2023, 20th December 2023, and 19th January 2024. NCDEX guar seed spot price is INR 5664 per quintal. NCDEX guar gum prices are being traded at INR 11417 and 117576 per 100 kg (quintal) for the contracts expiring on 20th November 2023 and 20th December 2023. NCDEX guar gum spot price is INR 11494 per quintal. In local physical markets (Mandi), guar seed prices are INR 5600 per quintal, and guar gum prices are INR 11500 per quintal.

Guar Seed & Guar Gum traded strong due to adverse climatic conditions to guar farming

INDIA (www.guargumcultivation.com) - Guar Seed and Guar gum traded strong in Jodhpur market after adverse climatic conditions to guar cultivation and poor predictions of arrival of rainfall. Strong buying is noticed in physicals markets at higher prices. Climatic conditions are very poor in guar growing belt. No major rainfall has arrived in this region since last 3-4 weeks. The crop is showing the moisture stress conditions. If there will be no rainfall in next on- two week then then crop will almost damage on large guar cultivation area 

In Jodhpur market Guar Seed is traded at Rs 6,200/100 kg higher on last closing and Guar gum is traded at Rs 13,250/100 kg higher on last closing.

Guar Seed & Guar Gum traded strong due to adverse climatic conditions to guar farming

Good quality of Guar Seed is traded at Rs 6,300/100Kg and average quality Guar Seed is traded at Rs 6,150/100 Kg. Standard quality Guar gum is traded at Rs 13250/100 kg. In interior location Guar is traded up to 5,800/100 Kg.  

Guar gum and guar seed are traded strong in forward market. At NCDEX (National Commodity & Derivatives Exchange Ltd) Guar gum is traded at Rs 12708, 12955 higher by 0.66% or Rs 122/100Kg, 0.89% of Rs 115/100 Kg with open interest of 30730, 27400 for September and October contracts. Guar Seed is being traded at Rs 6159, 6292 higher by 0.67% or INR 41/100 Kg, 0.73% or INR 46/100Kg, with open interest of 55370, 41405 for September and October contracts.

There are also predictions of gain in crude oil prices. Crude oil prices are being traded at upper side during last trading session after the U.S. Energy Information Administration predicted the decline in inventory of more than 10.5 Million Barrels for the last week of August, 2023. Crude oil is being traded at USD 85.5/Barrel.

Today's Guar Seed and Guar Gum Price: What's Driving the Movement in the Physical and Commodities Markets?

Guar seed and guar gum prices are on the move today, with the physical market and commodities market both seeing significant changes. Here's what's driving the movement and what it means for investors.

Guar seed and guar gum are two important commodities that are used in a variety of industrial applications. Guar seed is the source of guar gum, which is a thickener, stabilizer, and suspending agent. Guar gum is used in a wide range of products, including food, beverages, cosmetics, and pharmaceuticals.

Guar seed and guar gum prices have been on the move in recent months, with the physical market and commodities market both seeing significant changes. In the physical market, guar seed prices have risen by over 20% since the beginning of the year. Guar gum prices have also risen, but to a lesser extent.

What's Driving the Movement in the Physical and Commodities Markets?

There are a number of factors that are driving the movement in the physical and commodities markets for guar seed and guar gum. These include:

Increased demand from China and India: China and India are the two largest consumers of guar seed and guar gum in the world. Increased demand from these countries is driving up prices in the physical market.

Reduced supply: The supply of guar seed and guar gum has been reduced in recent months due to a number of factors, including drought in India and Pakistan. This has also contributed to the rise in prices.

Speculative trading: Speculative trading is also playing a role in the rise in guar seed and guar gum prices. Speculators are buying guar seed and guar gum in the hope that prices will continue to rise.

Guar seed and guar gum prices are on the move today, with the physical market and commodities market both seeing significant changes. Here's what's driving the movement and what it means for investors.
Today's Guar Seed and Guar Gum Price: What's Driving the Movement in the Physical and Commodities Markets?

What Does It Mean for Investors?

The rise in guar seed and guar gum prices is good news for investors who are invested in the guar gum industry. However, it is important to note that prices could also fall if demand or supply conditions change.

Investors who are considering investing in guar seed and guar gum should carefully consider the risks and rewards before making a decision. They should also do their research to understand the factors that are driving the market.

Here are some additional factors that could affect guar seed and guar gum prices in the future:

Weather conditions: Weather conditions in India and Pakistan, where most of the world's guar seed and guar gum is grown, can have a significant impact on prices. Droughts or floods can reduce yields and lead to higher prices.

Government policies: Government policies in India and Pakistan can also affect guar seed and guar gum prices. For example, if the government imposes export restrictions, it could lead to higher prices.

New uses for guar seed and guar gum: The development of new uses for guar seed and guar gum could also lead to higher prices. For example, guar gum is being used as a substitute for some plastics, which could increase demand and drive up prices.

Guar seed and guar gum prices are likely to remain volatile in the near future. However, the long-term outlook for the market is positive, as demand for these commodities is expected to grow. Investors who are considering investing in guar seed and guar gum should carefully consider the risks and rewards before making a decision.

As on last trading day, 14th July,2023, NCDEX guar seed price was INR 5596/Quintal, INR 5688/Quintal, INR 5799/Quintal, for 20th July 2023, 18th August and 20th September 2023 Contract. NCDEX spot price was INR 5631/Quintal. NCDEX guar gum price was INR 11,240/Quintal, INR 11,423/Quintal, INR 11,661/Quintal, for 20th July 2023, 18th August 2023 and 20th September 2023 Contract. NCDEX spot price is INR 11309/Quintal. In local physical markets (Mandi) average guar seed prices are INR 5,500/Quintal and average guar gum prices are INR 11,000/Quintal.

Export of Guar Gum has increased by 12.42% in year 2021-22

As per export data provided by the “Agricultural and Processed Food Products Export Development Authority”(APEDA) for the period of April-2021 to January -2022, guar gum export has Increased by 12.42% or 29,187 MT, from 2,34,871MT in year 2020-21 to 2,64,058 MT in current year 2021-22 for the same period. Increasing export of guar gum and other guar products are good for guar growing farmers and whole guar gum industry. Guar is a very special agriculture crop, guar gum is processed product derived from guar crop it is used in various industries from food, pharmaceuticals, to drilling and fracking chemical. 


Major portion of guargum is exported to USA and other destinations for oil and natural gas industry. Currently oil and natural gas industry is bullish to NATO -RUSSIA war. Oil prices are increasing due to poor supply of crude oil in market after the ban on Russian crude oil. Crude oil is being traded around USD 111.27 /Barrel.

Export of Guar Gum has increased by 12.42% in year 2021-22, Guar, guar gum , , guar gum processing consultancy, guar gum export, guar gum cultivation consultancy, guar gum consultant, guar gum consultancy, guar gum future price, guar gum future news, Guar Gum export, Guar gum import
Export of Guar Gum has increased by 12.42% in year 2021-22

For the current year there will be two basis factors which will support the higher prices of guar price, first factor will be lower production and second factor will be increased export of guar gum and guar products. European countries are planning to switch from Russian Crude oil and natural gas.

Oil rig count is decreasing in USA. As per Baker Hudges oil rig count currently 693 oil rig are active in USA which is 254 higher than previous year oil rig count during same period. Increasing oil rig count and drilling activities is a positive news for the indian guar gum industry. Global demand of crude oil will boost the oil prices and that will lead to increase in new oil drilling activities in USA.

As on today NCDEX guar seed price is INR 6364/Quintal for 20th May contract. NCDEX spot price is INR 6350/Quintal. NCDEX guar gum price is INR 12452/Quintal for 20th May contract. NCDEX spot price is INR 12400/Quintal. In local physical markets (Mandi) guar seed prices is INR 6200/Quintal and guar gum prices is INR 12500/Quintal.

MATCHED CONTENT / SIMILAR NEWS