Guar Production Takes a Hit

The guar industry in India is bracing for a difficult season, with crop yields expected to drop significantly. Agricultural expert Shripal Saraswat estimates that guar crop production could decline by as much as 35% compared to last year.

At Gawarbhid, one of the key market has prices ranging from USD 0,60 to USD 1,32 per kg. Interestingly, most of the guar arriving at the market is of superior quality, especially the white lager variety, catching the attention of buyers. However, there’s growing concern about how future weather patterns might affect the production of guar, particularly in areas like Mer and Barmer, where there has been significant plantation.

Unstable Weather Conditions Put Pressure on Guar

Poor rainfall has already damaged other crops like Var, raising alarms about the sensitivity of guar production this season. Early yields in Rajasthan are much lower than last year, with outputs ranging from one to two quintals per beetha, less than half of what was expected.

There’s widespread uncertainty about how much guar will actually be harvested this year. Many industry insiders are skeptical of overly optimistic projections, recalling past seasons when expected yields fell short. Worsening weather could lead to even bigger losses for guar farmers and traders.

Guar Gum Production Stays Steady Despite Challenges

Even with all the difficulties, guar gum production is holding steady as of now. With monthly outputs of 27 to 30 thousand bags. Pricing, however, remains tricky, with fluctuations driven by both domestic and global markets. If prices fall below USD 0,60 per kg for guar, farmers might hold back their stocks, which could lead to further price volatility. The coming months will be critical in determining how the guar industry fares this year.

Conclusion: Clouds of Uncertainty Are There on India's Guar Crop

India’s guar industry is facing a challenging year with production hits, low yields, and volatile market conditions. For traders, it might be wise to hold off on buying until the full extent of the harvest is clearer, likely after the initial wave of new arrivals. Prices could stabilize around mid-season, offering a better window for purchasing guar at more favorable rates. However, those holding stocks should keep an eye on weather conditions and global demand, as any further decline in yields could spark a price increase later in the season.





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