The Hindu Business Line : Guarseed crop seen on course for 1.10 cr bags output

Chennai, Sept. 11 Guar crops sown during the first week of August need 10-15 mm of rainfall in the next one week, while the early sown crops need rainfall during the last week of this month or early next month to hit the anticipated 1.10 crore bags (of 100 kg) of guarseed output this year.

“We have had scattered rainfall during the weekend, which is good for the crop. But we need more rains and the Met Department’s comment that more rainfall is on cards in the next one week is good news for guar growers,” said Mr Jeevan Gandhi, President of Indian Guar Gum Growers Association.

Initial estimate of 1.10 crore bags production stands good and in case there is any shortage or failure of expected rains, then the production could drop to around 1 crore bags, he said. Around next week, a better picture of the crop situation is likely to be available.

“In case there is a lower rainfall or if it is to be scanty, then the quality of the crop could be affected. Also, the yield could be hit,” he said.

The current higher temperature of 37 degree Celsius and high humidity promised rains, he said.

Estimated prices

In view of the rains, guarseed prices had dropped by Rs 100 a quintal. Guarseed prices in the spot market at Jodhpur in Rajasthan are currently ruling at Rs 1,651 a quintal, against Rs 1,748.15 on August 27. Guarseed futures for delivery this month are ruling at Rs 1,626, against Rs 1,756 on August 27, while November contracts have dropped to Rs 1,683 from Rs 1,801.

Guar products

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 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.

Supply situation

Whether the production is around 1 crore bags or 1.10 crore, the supply situation would be comfortable, Mr Gandhi said.

With a carryover stock of 50 lakh bags, there was an assured supply of 1.50 crore bags. “This would convert to around 2.9 lakh tonnes of guar gum,” he said.

Export demand for guar gum is exported to be 2.4 lakh tonnes, while domestic demand was pegged at 50,000 tonnes. “I expect the overall demand to be 2.85 lakh tonnes and we should have no problems of supply,” Mr Gandhi said.

He also said there could be an additional 15,000 tonnes demand for guar rum from Russia, the US and China this year.

India exports guar gum to Europe, the US, Australia and China. At least over 100 countries import guar products.