Lower Guar Crop Reduces Gawar Income

India's guar market has experienced a significant decline in income this season. Primarily due to lower guar production. According to Gajendra Parakh, daily guar procurement has fallen by 1 million bags compared to last year. Currently, 50,000–60,000 bags are being procured daily across various centers. However, this figure is expected to decrease further as the season advances.

Predicted Drop in Daily Procurement

Gawar income is anticipated to decline further in the coming months:

• By December, daily income may reduce to 30,000 bags.
• By January, daily procurement could drop to 20,000–25,000 bags.

So far, the total procurement for the season stands at 2.5 million bags, compared to 3.5 million bags at the same point last year—a 1 million bags reduction in income year-over-year.

Challenges for Guar Mills and Stockists

This season, guar stockists have been largely absent from the market, leaving guar mills struggling to secure adequate quantities. While local guar purchases achieve parity for mills, sourcing from other cities remains a challenge. Average guar yield is 1.5–2 quintals per beedha (approximately 0.15–0.20 tonnes per hectare). And birani guar yield was below the average this season.

Approximately 50–60% of this season's guar crop has already entered the market, with the remainder expected to arrive gradually. While the guar market's fundamentals remain bullish, speculative activity is notably absent.

• Futures buyers are staying away due to low incentives.
• Despite no signs of a downturn, market forces will dictate the timing of a potential price boom.

Steady Guar Gum Exports

Guar gum exports remain stable, with 28,000–30,000 tonnes being shipped monthly. Export performance is unaffected by domestic market challenges, maintaining steady revenue for the industry.

Conclusion: A Challenging Season for India’s Guar Market

The guar market in India faces a challenging season, with a 1 million bag income decline driven by reduced production and low market activity. However, stable guar gum exports and potential demand recovery for korma provide some optimism. As the season progresses, market fundamentals and crop arrivals will shape the industry's trajectory.





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