The Hindu Business Line : Guar gum producers gain

Stocks of guar gum producer Vikas WSP (that recently re-entered the market) and India Glycols have been moving up quite steadily, with improved trading volumes.

Both India Glycols and Vikas WSP on Wednesday hit the 52-week high of Rs 210 and Rs 65 respectively on the back of heavy buying. Over the week, India Glycols has gained 17 per cent and Vikas WSP has surged 27 per cent.

According market men, guar futures on commodity exchanges are trading firm on expectation of a lower production this year. Market estimates production of guar seed at 55-60 lakh bags against the earlier expectation of 90 lakh bags. The lower guar seed production can result in increase in guar gum prices, which may benefit companies.

The Jodhpur spot price of guar gum is currently hovering around Rs 4,630 per quintal. Sources close to the company feel that the contamination issue in EU will be resolved soon.

July recall

It may be recalled that guar gum prices fell sharply after the EU Rapid Alert System for Food and Feed informed member States that in certain batches of guar gum from India, the contamination levels were very high.

Swiss company Unipektin AG, which supplies guar gum products to EU markets, recalled several batches of food additives containing guar gum sent by India Glycols on July 30.

K.S. Badri Narayanan

Suresh P. Iyengar

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