The Hindu Business Line : Guar seed prices may stabilise on demand

GUAR seed prices are likely stabilise around current levels on steady demand after declining in the last couple of weeks due to increased arrivals, trade sources said.

Guar seed prices in Jodhpur were down Rs 400 a quintal (20 per cent) at Rs 1,650 on Thursday from the year's peak of Rs 2,040 quoted on September 1, while guar gum prices were also down Rs 1,400 (24 per cent) at Rs 4,530 a quintal from Rs 5,950 quoted on September 1.

Total daily inflows of guar seed at the various terminal markets of Rajasthan, Haryana and Gujarat (major producers of guar seed) have touched 55,000-60,000 bags (each of 100 kg) in last one week, thanks to projections of good crop during the current season.

"Daily inflows in Rajasthan mandis are around 25,000 bags and are expected to reach peak level by next week. Major buyers are processors, exporters and stockists," a Jodhpur-based trader said.

Seed prices in Jodhpur declined by Rs 100 to Rs 1,650 a quintal on Thursday on improved inflows.

"Prices of seed in the spot market are ruling lower marginally in last two week as inflows increases but they are unlikely to go down further due to heavy speculative interest in the futures markets," he said.

About 40-45 processors in Rajasthan have started their activities.

"The market is still in disparity for them. Seed prices should fall further by about 100 a quintal," a leading processor said.

Guar crop is estimated to be normal around 55-60 lakh bags for the current season compared to around 55 lakh bags last season.

Of this, crop in Rajasthan is estimated to be around 30-32 lakh bags while crop of 20 lakh bags in Haryana and nearly 10 lakh bags in Gujarat were estimated.

Traders were expecting to carry forward stocks of seeds at 30 lakh bags. Thus, total availability for the current season is expected to be around 90 lakh bags.

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