Guar Prices Likely to Rise as Supply Tightens

The guar seed and guar gum markets are picking up momentum, with demand significantly outstripping supply. Daily arrivals are limited to 15 to 16 thousand bags, while consumption is much higher at 35 thousand bags. With stock levels declining, prices are expected to rise steadily in the coming weeks.

Limited Arrivals Keep Supply Tight

Fresh guar arrivals are likely to continue until February 15, but stocks may begin running low afterward. Most of the guar currently being traded comes from existing stock rather than new harvests. Prices have already risen, with guar seed trading at USD 0,63 per kg, while guar gum is priced at USD 1,30 per kg.

So far this season, farmers have sold 43 million bags of guar seed, but approximately 20 to 22 million bags remain in stock. This remaining stock will play a key role in shaping price movements over the coming months.

Traders Expect Higher Guar Prices in 2025

Traders believe that 2025 could be a strong year for guar gum and guar seed prices. Guar gum is projected to reach USD 1,44 per kg, while guar seed may trade at USD 0,96 per kg. With steady demand and limited availability, upward pressure on prices is likely to persist.

Robust Export Demand Fuels Price Growth

Exports of guar gum have remained strong, with 25 thousand tonnes shipped in December, marking the highest monthly volume in recent years. January exports are also expected to remain steady, with estimates ranging between 22 and 30 thousand tonnes. This continued export demand is keeping prices firm even as supplies shrink.

Processing Mills Face Challenges as Stocks Run Low

With stock levels tightening, many processing mills are finding it difficult to stay operational. Out of ten mills, only five are currently running, and in some areas, just two to four mills remain active. The limited capacity to process guar is further constraining supply in the market.

By-product Prices Surge on High Demand

Guar by-products like puri and korma are seeing significant price increases due to growing demand. Puri prices have risen to USD 2,64 per kg, reflecting an increase of USD 0,26 per kg. Similarly, korma prices are now trading between USD 0,44 to USD 0,45 per kg.

Conclusion: A Strong Upcoming Market for Guar

The guar market is likely to remain firm in the coming months, driven by limited stock, steady export demand, and reduced processing activity. Traders and buyers should keep a close watch on the market as prices are expected to rise further.





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