Indian Guar Gum Market May Rise As Supply Constraints

The Indian guar gum market is gaining momentum, driven by a limited supply and strong demand. Spot prices are nearing their legal limits, and market experts believe there is minimal room for further declines. Around 4.5 million sacks of guar seeds have been imported into India this season, while total production is expected to reach about 7 million sacks.

The market is currently dealing with a mix of old and new stocks, making it challenging to gauge total availability. Daily arrivals range from 12,000 to 13,000 sacks, including both fresh guar and older stock. However, the exact quantity of older stock remains uncertain, adding to market speculation.

Winter Crop Season Boosts Guar Gum Market & Related Crops

The winter crop season has begun, contributing to increased production of guar gum and related crops like chickpeas, mustard, wheat, and cumin. Experts estimate the combined production of these crops will reach 30,000 to 35,000 tonnes. As demand continues to grow, the market could see a more pronounced impact from the supply-demand gap, leading to stronger pricing trends.

Guar Seed and Gum Prices Offer Buying Opportunities

Guar seed prices are currently around USD 0,60 per kg, while guar gum is trading at USD 1,20 per kg. Market analysts suggest that these prices present good buying opportunities for traders and investors. Those who purchase at these levels may benefit if the market strengthens as predicted.

Demand in Regional Markets Supports Positive Market Sentiment

The guar market is also benefiting from robust demand in regional markets such as Churi and Kormari. These markets have shown consistent interest in guar products, contributing to a positive market sentiment. Moving forward, market trends will largely depend on sales conditions and the balance between new and older stocks in the market.

Conclusion: Bullish Momentum Is Expected

The next few days could see a continuation of the bullish trend, with market participants keeping a close eye on regional sales patterns. The combination of limited supply, steady demand, and favorable pricing suggests the guar gum market might present promising opportunities for those looking to invest in this sector.