Current Market Developments
- In last one month, Guar seed prices have declined by 5-7 percent in most of the domestic spot markets of Rajasthan, Haryana, and Gujarat.
- NCDEX Guar seed prices at Jodhpur have come down from Rs 6,300 per quintal to Rs 5,500 per quintal. Similarly, Guargum also declined to Rs 11,324 per quintal from Rs 12,942 per quintal month ago, a decline of 11 percent.
- The arrivals of new crop in domestic markets have kept pressure on Guar prices. Currently, subdued demand is noted from Guar seed crushing mills of Rajasthan and Gujarat. The price trend is likely to remain weak in the month of October as supply pressure will be high against weak demand.
- Although normal to excess rainfall was witnessed in Rajasthan the acreage under Guar crop has decline by 6 percent at 27,99,489 hectares as compared to 29,90,000 hectares last year 2022. Trade sources are expecting the production to decline in Rajasthan to around 15 lakh tonnes.
- According to the Department of Agriculture Gujarat, Guar seed production during 2023-24 is estimated to decline by 9 percent at 67 thousand tonnes as compared to 74 thousand tonnes last year 2022-23. Lower acreage is reported from Gujarat also.
- At the export front, currently around 17-20 thousand tonnes of Guargum are exported. But there are some concerns about the export of Guargum to Canada due to current political issues. However, there are expectations of higher domestic and export demand from November onwards.
- During the current season 2023-24 (Apr-Jul) Guargum exports stood at 1.38 lakh tonnes mainly to Norway, Netherland, USA, Russia, Germany. Last year 2022-23 (Apr-Mar) Guargum exports registered an increase of 26 percent at 4.06 lakh tonnes as compared to 3.21 lakh tonnes in 2021-22.
Guar Seed Price Trend Vs Seasonality at Key Markets
Guar Seed Area, Production and Yield: India & Major States
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