Guar Seed (Guar Gum) :No takers for India Guar gum on higher prices
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The demand for guar is poor in international market due to higher prices. Also, importers are not willing to buy Indian guar seed or guar gum at higher prices, instead they are looking for cheaper alternatives.
No takers for India Guar gum on higher prices | www.commodityonline.com | 3
NEW DELHI (Commodity Online): This year India's guar seed prices are witnessing a huge up tick movement in recent weeks and both guar seed and gur gum have recorded around 50 percent rise in their spot market prices.
Industry sources say that guar farmers are hoarding their products to earn higher market prices by creating artificial scarcity.
Guar seed spot market prices are around Rs. 12,000 to Rs. 13,000 per 100 kg and guar gum prices are ranging around Rs. 39,000 per 100 kg.
Guar seed prices have surged from a level of Rs. 2,422 per 100 kg in 2010-11 to Rs. 29,000 per kg in 2011-12 and gum prices had touched a high of Rs. 100,000 per 100 kg.
This year guar seed production is expected around 8 mn bags to 20 mn bags (each weighing 100 kg).
Right now, importers are not willing to import either guar seed or guar gum at higher prices from India and due to this Indian guar processors are losing their export market.
The demand for guar is poor in international market due to higher prices. Also, importers are not willing to buy Indian guar seed or guar gum at higher prices, instead they are looking for cheaper alternatives.
Oil and gas drilling companies will use guar only if prices were about $5,500 a ton as alternatives such as carbon methyl cellulose were available at lower prices.
Guar seed production may climb to as much as 2.5 mn tons this year, enough to make at least 600,000 tons of guar gum, from about 1.5 mn tons in 2011-12.
The crop area under guar is estimated to have increased 56 percent to about 5 mn hectares this year in three major growing states of Rajasthan, Haryana and Gujarat.
India accounts for more than 70 percent of the global production of guar it is grown in dry regions of India. The seed is also grown in Pakistan and U.S.A.
In financial year 2012, guar gum was the top performing export commodity with export of about 700,000 tons worth $3 bn.