Commodity Analysis

Dealing room check: Positive outlook for guar gum

Veeresh Hiremath | Updated on January 09, 2018 Published on August 06, 2017


Guar complex futures witnessed a sharp 5 per cent gain last week on the back of speculative buying and better export outlook for guar gum. Delayed sowing amid crop damage concerns in some parts of western Rajasthan also helped the prices. Most active guar seed contract traded on the NCDEX moved up by 5 per cent to close the week at ₹3,739 per quintal. Similarly, the NCDEX guar gum futures for October delivery was 8 per cent for the week and has closed at ₹7,942 per quintal.

Firmness in guar futures is likely to remain intact as the export demand for guar gum picks up. Supply has dropped in recent days, while millers who were avoiding bulk buying earlier have now indulged in fresh buying as result of an increase in export enquiries for gum.

Surge in exports

As per the data from the Agricultural and Processed Food Products Export Development Authority, India's guar gum exports for first three months of FY 2017-18 almost doubled to 145,775 tonnes from 77,174 tonnes a year ago, due to higher demand from the US. Total guar gum export from India has surged by 130 per cent (year-on-year) till May in 2017-18, as India exported 1,07,458 tonne, while about 46,691 tonnes were exported last year over the same period.. However, subdued demand for guar meal may be an area of concern as higher GST on guar meal has led to substantial fall in overall demand of guar meal.

During the first two months, the US imported more than 53,300 tonnes of guar gum compared to 14,653 tonnes last year. As the US expands its shale gas production, the demand for guar gum will surge as it is used as a fracking agent in shale gas extraction.

The writer is Head-Commodity Research, Karvy Comtrade

Published on August 06, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.