The Hindu Business Line : Guar seed output may touch 1.01 crore bags

Chennai, Aug 27 With the growing areas in Rajasthan receiving good rainfall, guar seed production in the country is likely to touch 1.01 crore bags (of 100 kg).

“The crop situation currently is good. Though July was a bit dry, we had good rains between August 1 and 10. Rains were good in the entire Rajasthan belt. Production could be at least 70 lakh bags in Rajasthan,” said Mr Jeewan Gandhi, President of Indian Guar Gum Growers Association.

Haryana is likely to see a production of 30 lakh bags, while the rest is expected to come from Madhya Pradesh, Gujarat and Uttar Pradesh.

Rain delay

“Since the rains were delayed, farmers who had no option in Rajasthan went in for guar. However, one aspect is that we need rains in September in the areas where the crop has been sown late. If that materialises, then we could have the anticipated 1.01 crore bags production,” Mr Gandhi said.

In case, the rains play truant, the production could be around 90 lakh to one crore bags.

“Guar is a wonderful crop and has different uses. It is also difficult to find a replacement for it,” Mr Gandhi said.

Varied uses

Guar or cluster beans is a legume crop that grows best in the semi-arid regions in the country. In India, guar is grown primarily in Rajasthan. It is also grown in Haryana, Punjab, Gujarat and Madhya Pradesh. While guar is seen as a vegetable in the South, in the North, it is primarily seen as a raw material to produce guar gum.

Guar gum is used as a thickening agent and additives in food products such as instant soups, sauces, processed meat products, baked goods, milk and cheese products, yoghurt and ice-creams. It is also used in industrial applications such as paper and textile sectors, ore flotation, explosives manufacture and fracturing of oil and gas formations. India is the major producer of guar seed and gum, making up 80-85 per cent of the total global supply.

outlook

“We already have a carryover stock of 50 lakh bags. Now, if the crop turns out to be as expected, then we will have an assured supply of 150 crore bags. That would be enough to meet the domestic and export demand of 2.75 lakh tonnes of guar split, which is then turned into guar gum,” Mr Gandhi said.

“If the production is good, then the market could decline from the current level. Guar prices could decline by Rs 100 a quintal,” he said.

Currently, guar seed is quoting at Rs 1,748.15 a quintal in Jodhpur. In the futures market, guar seed September contract is ruling at Rs 1,756 a quintal, while October contract at Rs 1,801. The prices are lower than it were during mid-July when guar seed for September contract was quoted at Rs 1,991 a quintal and spot prices ruled at Rs 1,876 in Jodhpur.

Export demand

“Prices of guar split are also likely to follow and our export quotes could also witness some moderation. The rupee’s fall to 44 against the dollar is one of the reasons for this,” Mr Gandhi said.

The guar gum growers representative said export demand was expected to be good, especially from the US and China.

Asked about exports to Europe, he said the only problem was getting certification from designated labs that the consignments are free from dioxin contamination. “Still, they will import at least 20,000 tonnes,” he said.

India exports guar gum to Europe, the US, Australia and China, while Pakistan is one of the main competitors for India in this. At least, over 100 countries import guar products.