Guar Gum at Lowest level after December 2010

Guar gum has slide down at lowest level after December 2010.  Yesterday the rate of Guar gum in Jodhpur Market was below INR 6000/100 Kg, which was at lowest level after December, 2010. Prices of Guar Seed has also slide down below 3200 In Local Agriculture market of Jodhpur and Ganganagar.

More that 70% Guar gum is used in Oil and Natural Gas industry. Prices of crude oil is also at lowest level.  Demand of Guar Gum has slide down drastically from Oil and Natural Gas Industry. It is peak time of Energy demand but prices are lowest level. There are no any chances in recovery of crude oil prices till next winter  ( November,2016  to March- 2017).

Pressure from crude prices will always reflect in  Indian Guar Gum Industry. Lean period in Indian Guar gum industry will keep going up to 2017. 

It is very critical time for new industries. Most of new plants are closed.  It has become very difficult to recover the processing cost even for old plants. Physical stocking  is main loss making activity for the industries.

Farmers are in demoralized with this price of guar gum.  Some farmers have stock for two three years , they are in heavy loss.  Industry need some new initiatives in R&D and exploration of new market except Oil and Natural Gas Industry.  Dependency on Oil and Natural GAS Industry Must Come down below 50 % for sustainability in Guar  Industry.

Devaluation of Chinese Yuan and its impact on Indian Guar Gum Industry.

In August 2015 China devaluated its currency around 3 % in single week. It leaded to global crises. Economist and market analyst point out that China has taken this step to save its export, which was declining regularly. The declining export was not a good sign for the Chinese economy. China want to maintain its export share in global market.

Indian Guar Gum industry was already facing the crises due to imbalance in demand and supply. In recent year product of Guar gum is increasing continuously and the global demand is coming down due to decline in crude prices. Here I would like to mention that more than 60 % Guar gum is used in Oil and Natural Gas Production Industry. Around 40 % Guar gum is used in other industries.

Guar Guard at guar gum crop cultivation farm 

This devaluation is affecting  Indian Guar gum industry in two way. First china import the Guar Split from India and process it and re-export it. Import export is done in USD but the processing cost comes down and china provide guar gum powder at lower rate than India. This is the first effect. 

In another way China is supplying alternate product of Guar Gum at lower cost than earlier. Xanthon gum is major alternate of Guar Gum powder which is used in other  than Oil and Natural Gas  Industry. There is a lot of requirement of guar gum powder from food processing, processed food, pharmaceutical industry, textile industry, Souse & catchup industry, FMCG industry, liquid shop and detergent industry. China is major producer of Xanthon gum . It is substituting at large scale.

Though Xanthon Gum is not a complete alternate of Guar Gum , but industries are preferring Xanthon gum due to lower price than Guar Gum.

Guar gum cultivation statistics of Rajasthan year 2015-2016

Govt of Rajasthan has launched the crop wise area sown for Kharif season. As per data released total sowing  of Guar is on 39,18,000 Hac in year 2015-2016 , by the end of season it might be reach  up to 40,00,000 Hac.  This is 23% more  than  the last year.  This figure was 31,84,000 Hac in the same period of last year. If we take a average productivity of  400 Kg per Hactare then there are chances that this figure may cross the last year production. Thus there may be a production of 16,00,000 MT Guar seed in this year ( 2015-2016 ) from Rajasthan.

Solvay and L'Oreal join hands for sustainable guar farming in India

Solvay, the Belgium-based manufacturer of specialty chemicals, and L'Oreal, the French cosmetics and beauty company, have teamed up in a scalable three-year project to teach and promote sustainable agricultural practices among 1,500 guar bean farmers across ten villages in the desert region of Bikaner, Rajasthan.

Solvay is one of the leading global players in guar derivatives and supplies its customers who formulate these ingredients in a variety of applications such as in food, cosmetics, oil & gas extraction and textile industries.

Grown mainly in India's semi-arid regions, guar is the main resource for many farming communities but its production is volatile as it relies on monsoon rains. Solvay's ‘Sustainable Guar Initiative’ aims to empower countless farmers with the tools and knowledge to cultivate the crop through good agricultural practices, resulting in more continuous, high-yield production. Solvay's Novecare global business unit (GBU) in 2013 launched the initiative, which is also implemented by non-governmental organisation TechnoServe, as part of the Group's sustainable development strategy Solvay Way.

"Solvay’s initiative and partnership with L'Oreal, acting as a founding member, brings many benefits - for farmer communities, their environment as well as for demanding industrial applications. The project will help farmers improve the use of water and preserve the soil, it will raise their income and support local communities. Our approach will also reinforce the availability of bio-based guar for industries and allow them to promote their ambitious sustainability goals,” said Emmanuel Butstraen, president of Solvay Novecare and sponsor of the ‘Sustainable Guar Initiative’.

India is the world's top guar producer with about 80 percent of total production. As a drought-resistant crop, guar conserves water resources and replenishes soil nutrients through nitrogen fixation. The seeds are processed to obtain guar gum. Demand for this ingredient is on the rise in a range of industries.

Laurent Gilbert, director for International Development of Advanced Research at L'Oreal, commented, "Our partnership with Solvay is a concrete implementation of our ‘Sharing Beauty with All’ sustainability commitment. By improving yields while promoting a suitable model of sustainable agriculture, we will improve the livelihood of farmers and protect local resources such as water, soil and biodiversity. This program will allow ensuring a durability of income for guar bean farmers while considering the impact of climate change into their activities.” 

For more information please click the below link.

http://www.business-standard.com/article/b2b-connect/solvay-and-l-oreal-join-hands-for-sustainable-guar-farming-in-india-115090300399_1.html

Guar Korma the emerging base of Guar Gum Industry.

In this worst performance of guar gum, guar korma is emerged as main leverage for the guar industry. Low global demand, excess production and low prices of crude oil and natural gas is putting a negative impact on guar gum prices. Industry is getting strong support from Guar korma. 

Three year before when prices of Guar seed were Rs 27,000/100 Kg and guar gum at Rs 90,000/100 Kg at that time rate of guar Korma was only Rs 5/Kg. Now it is totally different , guar seed is at Rs 3700/100 Kg and Guar Gum is at Rs  7800/ 100 Kg and guar Korma is at Rs 2600/ 100 Kg. 

There are two possible reason. Protein content in Raw Guar Korma is up to 45 % which can be increased up to 56% -58 % by cleaning and roasting of Raw Guar Korma. At the another side Soya oil Cake is major competitor of Guar Korma with maximum 45 % protein.

Cattle feed industry prefer Guar Korma over Soya protein. Guar Korma is more digestive in nature and it is cheaper  than Soya. Demand of Guar Korma is very high from the cattle feed industry.

At another side there is low demand of guar gum so processing of guar seed is almost closed, that's why supply of the Guar Korma is very low and demand is high. 

There is huge potential of Guar korma from cattle feed industry. In coming two three year it is not impossible if Guar korma reaches at 5000-5500. Market of Guar Korma is very sound and is growing Day by day. Cattle feed industry will now downfall like oil and natural industry. Demand of cattle feed will increase day by day. 

Seed Treatment or Inoculation of guar seeds for cultivation

Guar is a leguminous crop and its roots bear nodules with special kind of bacteria that converts atmospheric free nitrogen to fertilizer available form. This symbiotic relation between bacteria and root nodules helps to reduce the cost of nitrogen fertilizer for crop. Therefore, to maintain the population of bacteria in the soil with respect to growth of plant seeds of Guar are to be inoculated with these bacteria before sowing. 

This is done by preparing a 10 percent sugar or gur (jaggery) solution in boiling water. This jaggery/sugar solution is allowed to cool. After cooling, 3-4 packets of Guar bacterial culture (Bradyrhizobium sp.) are mixed to make a thin paste. This paste is coated over to the seed. Seed is dried under shade for 30-40 minutes before sowing. 

Guar Gum prices will be hurt by ban on Nestle owned noodles "Maggi .

Nestle is one of largest consumer for Guar gum specially in food industry.  Its application in Noodles and other food items consumes guar gum. The noodles brand "Maggi" has made penetration in Indian market very fast, Maggi is almost consumes through out the India. Recent controversy of  finding of food ingredient more than limit has leaded to ban of MAGGI though out the India and many South East Asian countries.

This ban is also hit the other brands of noodles. Since Food industry is largest consumer of Guar gum after  Oil & Natural  Gas Production industry. Already there is slow down in Oil and natural gas industry, then there was little bit hope form Food Industry. The Ban on MAGGI has hit the consumption of guar gum in food industry.

The demand of Guar gum will remain under pressure during this controversy. Processed food is very goof market for Guar gum. Govt and Industry must come out form this situation. This will be helpful for Farmers and industry both. This ban has also hit the other food ingredients, which are used in MAGGI.

Maggi also uses guar gum in large quantity like Tomato Ketchup , PASTA, Magic Masala etc..But Noodles were having major market share.

Crude Oil Prices to Remain at Under $80 Per Barrel for Three to Seven Years – LUKoil President

Global oil prices will not exceed $75-80 per barrel in the next three to seven years, President of Russian oil giant LUKoil Vagit Alekperov said Thursday.

"We assume that oil prices in the coming years are unlikely to exceed $75-80, this in a medium-term period, from three to seven years,” Alekperov said in an interview with Rossiya-24 television channel.

Oil prices more than halved during the last six months of 2014 amid oversupply in the market.

After reaching a five-year low of under $50 per barrel in January, Brent crude futures currently stand at some $62, while WTI crude stands at nearly $57 per barrel.

Alekperov stated that he does not expect the Organization of the Petroleum Exporting Countries (OPEC) to agree on cutting oil production during its upcoming meeting, set to kick off on June 5.

During its last meeting in November 2014, OPEC, whose 12 member states account for over a third of the world’s oil output, decided against trying to boost plummeting oil prices through production cuts.

This prediction may be major input for future guar gum prices.

Read more: http://in.sputniknews.com/russia/20150528/1014631520.html#ixzz3bXERiFGI

Guar ( Guar Gum or cyamopsis tetragonoloba ) curry.

To increase the consumption of Guar seed industry will have to come with new idea. I am working on this idea that how to increase the consumption of Guar. Traditionally Guar was used a regular food item for Human and Cattle. in interior area of Rajasthan it is still used in many traditional  food item 

1. Guar is used as making fried namkeen daal just like Moong Daal.
2. Whole Guar is used in making Mixture Namkeen by frying in cooking oil and sprinkling the spices on it. There is huge consumption  of guar in Bikaner Namkeen Industry.
3. Guar  dehydrate green bean are used as snakes after frying it.
4. Guar is also used as making Guar daal curry
5. Guar whole Daal curry.
6. Guar green beans are used as making green vegetable curry.
7. Boiled guar seed is given to milking cattle

If you have any idea please share with me. Lets taste Guar curry recipe traditionally it is used in western Rajasthan.  We can find this type of food curry among rural communities. Some people also use guar as fortifying the flour,.It increase the protein content in flour. 

Traditional  Guar  Curry

Traditional  Guar  Curry

Guar curry is very simple. Sock the guar seeds in water for whole night.( 12 hour). The size of seed will increase three time.  Now wash and drain the water. Take oil in fry pan, heat it for spicies fry.  put some asfatida ( HING) then cumin seeds. mix one spoon garlic paste, fry it then after fry onion and green chilies as per taste. Now add the shocked over night guar fry it. Now add regular kitchen spicies Red Chilie, Coriander powder, Turmeric powder and small peaces of tomato. Now cook it in open pan or in pressure cooker. After half an hour check it if it is cooked or not. If yes then sarve it Rice or Roti ( Chapati) or Naan. You can add some curde ( 1-2 spoon) in Guar Curry after cooking.

It is good in digestion. It is rich in protein . It is also good for intestine as it is very rich in fiber. It will also stop fat decomposition on body. It is laxative in nature so it good  for digestive system.

Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation area will increase more than 30% in this year ( 2015-2016) .

A new picture of Guar ( Guar Gum or cyamopsis tetragonoloba ) seeds cultivation area gives a prediction of more than 30% increase in Ganganagar-Hanumangarh  guar production belt.

Last week I visited Shri Ganganagar, the major guar seed producing belt. In context to Guar seed production, picture is totally different. Seed producer, Seed dealer and Seed seller are presenting a new picture. Their inputs indicates that guar seed sowing will increase this year. farmers are not showing interest in cotton seeds.  They are preferring guar over cotton.Guar seeds are sold as hot cake.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop in farm

 In irrigated belt farmer takes Cotton crop as major crop, but farmer are shifting slowly and slowly from cotton to Guar. As per estimates there will be 30 % increase in guar seed sowing as compare to last year specially in Ganganagar-Hanumangarh belt. It means there will be  30% more production if conditions of climate remains same. 

I discussed with one farmer Mr Manoj Jangir. Mr.Jangir also run a agri input business. This year guar is first preference for farmers. He said that  guar is a 3-4 month crop while cotton is 5-6 month crop. farmers will free from his farm operation with in 110-120 days.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop in farm

Another farmer Mr Arvind Godara, Arvind is a young farmer and holding large size of farm. He told that Guar is a easy crop to cultivate,  unlike the cotton you don't need to be engage daily in the farm. Guar is low labor intensive crop. It doesn't require regular dose of insecticide and pesticide. In cotton crop, farmer has to go for insecticide- pesticide application every fortnight, even some times they have to apply weekly.

Guar ( Guar Gum or cyamopsis tetragonoloba ) mature harvested crop

New generation is happy with guar  as there is no too much tension and investment in guar cultivation. Even guar can survive easily in worst conditions. It need less irrigation than cotton.  The only concern is rate. since two year cotton is also not giving any major economic advantage over Guar. The farmers looks toward stability of Guar seed prices, If guar seed remain above Rs 3500/100 Kg, then farmer will be making profit. The current level of Rs 5000/100 kg is good for farmers. Input cost of Guar farming also very low. Guar is native crop of the region, so it grows well in hot and dry climate.

Guar ( Guar Gum or cyamopsis tetragonoloba ) crop  harvesting

If production of Guar seed will increase then it may increase the supply of seeds in local market. This over supply can put pressure on guar prices. Farmers are hope full that consumption of guar seed will increase. For farmer point of view risk factor is more in Cotton while Risk factor is less in Guar. Even guar is also source of green vegetable, cattle feed, soil amendment. No doubt Guar is a major cash crop in this area. 

Dr Deepak Rjpurohit ( Assistant Professor)  Mr Manoj Jangir ( Farmer and Agri Input Business owner )   and Me 

I also meet one entrepreneur Mr Sunil Nitharwal. He runs the business of guar seed production. He told that picture of Guar has changed in last 3-4 years. Every year new varieties are released. His company produces seeds of more than  7-8 varieties of  Guar seeds. Farmers are taking interest in his seed production program. His business of guar seed is growing. this year demand of Guar seed is high in market. He has supplied most of hist stock to dealers for new crop sowing. He is still getting demand of  Guar seed.

If  cultivation area increase then it will put a major impact on total production of guar seed in India. Ganganagar-Hanumangarh belt is major guar cultivation belt where guar is cultivated under canal irrigation water.It is ure that production of guar seed will increase in this year.