Water scarcity in Guar growing regions of Rajasthan and Haryana in the second half of June has raised prices of Guar Seed and Guar Gum by 10.5% and 13% , respectively, in the past month. Steady export demand from the shale gas industry of North America also firmed up Guar Gum prices, trade souces said.
Guar trade also feels that the government’s move to increase minimum support price (MSP) of Moong by 25 per cent in the ongoing kharif season may see farmers shifting from Guar to moong which in turn may bring down guar acreage in the country. If this happens, then Guar prices may remain firm in the months to come, trade sources said.
Prices of Guar Seed which was about Rs 3,750 per quintal a month ago is now commanding a price of Rs 4,144 per quintal. Similarly, Guar Gum prices have gone up by 13 per cent in the past one month to Rs 85,000 per quintal.
According to media reports, in the week ending July 6, 2018, the number of land rigs drilling for oil in the United States totalled 863, five more than the previous week, and up by 100 compared with a total of 763 a year ago.
India is a leading exporter of Guar Gum, commanding about 80 per cent of global production, followed by Pakistan.