Guar Gum Prices Recover After Recent Decline

The domestic market for guar gum experienced a significant decline in prices over the past month. Its due to an influx of new supplies and weaker global demand. Prices dropped by approximately $0,12 per kg during this period. However, demand is expected to rise at lower price levels, providing support to the market.

In Jodhpur, guar gum prices fell from $1,41-1,43 per kg to $1,25-1,26 per kg. Similarly, in Ahmedabad, prices dropped to $1,25-1,26 per kg after a steady decline from higher levels. Correspondingly, the price of raw guar also decreased by $0,02 per kg to $0,62-0,63 per kg.

Major Producing States and Current Market Trends

Rajasthan, Gujarat, and Haryana remain the top producers of guar in India. With Rajasthan contributing approximately 70-75% of the country’s total production. While the sowing area for guar decreased slightly in Rajasthan and Gujarat during the 2024 Kharif season, Haryana maintained stable cultivation levels. Despite an abundant supply of new guar in major producing regions, demand from millers, processors, and traders has been comparatively low.

Global Demand Expected to Rise

Earlier, guar gum demand was subdued in key importing countries, including the United States, Germany, Italy, Russia, and France. However, a rebound in demand is anticipated, particularly as consumption in European markets traditionally increases during the Christmas season. This seasonal uptick is likely to strengthen prices further in the coming weeks.

Improved Export Performance

According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 227,000 tonnes of guar gum during April-September 2024. This reflects an increase of 11,000 tonnes compared to the 216,000 tonnes exported during the same period last year. India continues to be the largest producer of guar and a major exporter of guar gum globally.

Conclusion

With the festive season driving demand in European markets and global consumption expected to improve, guar gum prices are likely to remain strong. While heavy arrivals of new guar supplies may temporarily limit price gains, rising exports and seasonal demand could provide continued support to the market.





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