Less Arrivals Attracts

Guar gum is predicted to be a highly attractive investment option this year, according to Gajendra Parakh. The daily arrival of new guar stands at 40,000 to 42,000 bags, which is significantly lower than expected. When compared to last year, guar arrivals are only at 50%, indicating a smaller crop this season.

Guar Crop Situation

So far, the guar crop in India is estimated to yield around 6 million bags annually, down from the 7.5 to 8 million bags produced last year. The key guar-growing regions, such as Ganganagar and Hanumangarh, received very little rainfall. Additionally, the crop suffered from fungal infections and unfavorable weather conditions at the beginning of the season. Due to this, farmers had to treat the crop with Lipa and Marmon, resulting in a lower yield.

In some areas, like the Khamratha and Magra regions, which usually have the best guar production, the yield this year has been one of the worst, with only 30% of last year's output. The Birani area is producing only 20-40 kg of guar, further impacting total production.

Price of Guar and Guar Gum

Due to the lower arrivals and robust guar gum export demand, prices are expected to rise during the new season. The price of guar mead is projected to reach USD 0,084 per kg, while guar gum could reach USD 0,168 per kg, making guar gum an attractive commodity for investors.

The current demand for Korma, a by-product of guar, is low due to colder weather in the eastern regions. However, after December, demand is expected to rise, pushing Korma prices to around USD 0,048 per kg. Since mills are operating at a loss, much of the stock is being held for future export demands.

Last year, the monthly export of guar gum and its products was between 18,000 to 20,000 tonnes by this time. However, this year, the average export volume has increased, with 28,000 to 30,000 tonnes being exported each month.

Conclusion

With reduced guar crop production, strong export demand, and rising prices, guar gum is expected to be one of the best investment opportunities this year. Investors are likely to benefit from the price increases in both guar gum and its by-products in the coming months.





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