JAIPUR | CHANDIGARH: The global downturn had its impact on the prices of guar seeds and guar gum, used as an emulsifier in commercial food processing.
There is around 30% dip in the export of guar gum, which has resulted in a drop in spot prices of guar seeds and guar gum in India, largely grown in Rajasthan and Haryana. Area under the guar is expected to fall by 5-10% this year, though forecast of good rains have raised hopes of a good yield.
Currently, the prices of guar seeds are ruling around Rs 1,860 per quintal as against Rs 2,150 per quintal last year. Similarly, the guar gum prices, which were around Rs 5,000 per quintal in the corresponding period last year, have fallen down to Rs 3,725 per quintal this year.
"India exports around 75-80% of its total guar gum production annually. Global economic slowdown has led to a drastic fall in exports of guar gum. Against the last year's export of 2.25 lakh tonnes, only 1.60 lakh tonnes of export has been reported this year. In short term, guar prices are likely to remain range bound. But at the onset of monsoon, it may slid further," says Jodhpur-based Guar Gum Association president Purshottam Kumar Hisaria.
This year, the total production of guar seeds has touched 9-lakh tonnes — lower by 1-lakh tonne than last year's production. Rajasthan contributes around 50% of the total production, while Haryana has a share of 25%. Remaining 25% comes from Gujarat, Punjab, Madhya Pradesh and Uttar Pradesh.
Forecast of early monsoon in Rajasthan has activated the traders. They want to clear their stock in anticipation of good produce in this Kharif season. The prices are bound to come down within few month," Mr Hisaria said.
The acreage of guar has been reduced in Rajasthan. In 2007, the area under cultivation for guar was 29.10 lakh acres, which had been reduced to 28.08 acres in 2008. Haryana agriculture department, additional director, BS Duggal informed the area under guar would remain 10 lakh acres as in 2008, compared to 8.5 lakh acres in 2007. "Farmers are going for cotton cultivation, which is giving an assured MSP, unlike guar. We may see an increase or decrease of an average 5% in the acreage," added Mr Duggal.
Sowing of the three-month crop (guar) will begin in July. However, forecast of good rains have raised hopes of good yield, negating the impact of low acreage. "The acreage might have fallen but there is not much variation in the production. The guar production ranges between 9-10 lakh tonnes in last two years and this year also, in anticipation of early monsoon, the yield is likely to be in the same range," says an official of Rajasthan agriculture department.
Source : The Economic Times