Current Sowing Impact Guar Gum Prices

Guar gum prices, currently at $0,13 per kg, are expected to rise to $0,16 per kg before the new season, according to Gajendra Parikh. Guar cultivation is heavily dependent on the monsoon. While sowing in Haryana matches last year's levels, Rajasthan has seen delayed rains affecting planting. If it rains within the next 10 days, transplantation can still occur, but the yield and quality might be affected. Sowing in Rajasthan has decreased by 0.20 million hectares compared to last year.

Expected Yields in Major Regions

In Rajasthan's canal belt, even areas with water availability need additional rain for successful guar cultivation. The irregular rainfall has not covered entire districts uniformly, leading to varied planting success. As a result, the yield in damaged areas is expected to be lower. Guar planting is underway, but the crop’s success depends on adequate rainfall. The crop needs a total of four significant rains, and the initial rains have been insufficient.

Despite these challenges, the demand for guar gum remains high. Old stocks have largely been sold, with some mandis reporting 50-90% depletion.

• The price of guar is currently $0,066 per kg, while guar gum is at $0,13 per kg.
• Even with timely rains, prices are not expected to fall significantly and could only drop by $0,0012-$0,006 per kg.
• However, a price rise is more likely, potentially reaching $0,14-$0,16 per kg.

Good Export Demand And Domestic Consumption

The export demand for guar gum remains robust, with 28,000-30,000 tonnes exported monthly and an additional 4,000 tonnes used domestically. To meet this demand, 1.2 million bags of guar are required, with current stocks expected to last only 3-4 months.

In the current market, the price of Korma is $0,046 per kg and Churi is $0,036-$0,037 per kg. Export of Korma has halted due to high container and shipping costs, marking the lowest price level for Korma.

Shripal Saraswat notes that the sowing of guar in Rajasthan's rainfed areas, including Bikaner, Ganganagar, and Jaisalmer, is dependent on upcoming rains. In Haryana, guar cultivation has increased by 20% compared to last year, but the crop's condition is poor due to insufficient rain.

Overall, guar gum prices are likely to rise before the new season due to delayed rains and reduced sowing in key areas. While some regions have seen increased cultivation, the overall yield and quality may be affected. Current market dynamics suggest stable to increasing prices, with high demand and limited stock availability playing crucial roles.