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Guar gum demand brings back cheer after 2 years

Feb 06, 2014

After a gap of two years, guar gum demand from the food sector has brought back cheer to the domestic guar gum industry.

Guar gum, the powdered endosperm of guar beans, is in demand in Germany, Latin America and China, who are importing the commodity for the food sector. China, leading the race, is expected to import 90,000 tonne of guar gum this year compared to 50,000 tonne last year.

The industry expects the 2014 guar gum exports to be around 5.5-6 lakh tonne due to the revived demand from the food sector and the growing usage of the commodity in the oil drilling sector. In 2013, the exports was 3.25 lakh tonne as there was not much demand from the overseas food industry and many countries had used cheaper alternatives for oil drilling.

The demand for oil drilling sector is also on the rise. Talking to ET, Rajesh Kedia, director of Jai Bharat Gum & Chemicals, said Chinese and American oil drilling companies that had shifted to cheaper alternatives such as carbon methyl cellulose and xanthane gum because of a sudden surge in guar prices in 2012 are once again back in the market. The demand from the oil and gas sector is growing at the rate of 8-10%," he said.

Halliburton and Baker Hughes are the two major buyers of India's guar gum. The companies drill and complete oil and gas wells using a pressure-pumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations. Guar is made into a thick gel and is used for carrying sand down to a well and into the cracks created from fracturing.

But despite the rising demand of guar gum, prices have remained stable as the production has been good during the kharif 2013. According guar gum traders, price of guar gum is being available in the Jodhpur mandi at about Rs 135 per kg. Guar seed is being traded at Rs 50 kg.

"Prices will continue to remain stable over next two to three months," observed Kedia.

India is a leading exporter of guar gum and it commands about 80% of global production, followed by Pakistan. Guar gum is made out of guar seeds (cluster beans), a legume crop that grows in semi-arid regions of Rajasthan, Gujarat and Haryana. Production in kharif 2013 is higher by 39% higher at around 25 lakh tonne.
 

    
Source: Economic Times



Jaipur to host 2-day global meet on guar

Dec 05, 2013

The National Commodities and Derivatives Exchange will hold the first guar international conference in Jaipur during December 6-7.

Over 200 participants, including about 40 foreign delegates, are expected to attend the conference and share their views on the global scenario of guarseed and its products.

Over the last few years, Indian exporters are receiving numerous queries for the export of guar.

The international community is very keenly watching the challenges and opportunities in the futures market.

Experts and industrialists from the US, Germany, Australia, Pakistan and Sri Lanka have confirmed their participation in the conference, according to a release by NCDEX.

The commodity exchange has taken the initiative to bring together all stakeholders and policy makers in the guar complex value chain.

As part of this effort, and for the first time, the exchange has decided to present Guar International 2013 – a conference and exhibition.

Starting with networking, various issues such as demand and supply, production and price risk management would be discussed in the conference.

    
Source: Business Line



Spurt in Guar gum export again

Dec 05, 2013

export has seen a sudden spurt in October following demand from international food and oil exploration industry. from October were up 85% and in September they were up 30%. Industry officials say with prices stabilising at the lower levels, demand and orders from overseas players have started coming in. Guar gum has been the top agri commodity in export basket for last two years. However this year in terms of quantity it was growing but slowed down in September.

“Demand for guargum is good in both the oil and food industry. In particular, after a gap of two years, guar gum is once again in demand in the food industry in Europe and the US. At present, 50% of guar gum export is in oil sector and 50% for food industry. One of the reasons for good demand is lower prices. At present guar gum prices have fallen at Rs 150 per kg, and in the coming month, further fall in prices is not ruled out. In addition, guar gum substitutes are costly, which again has pushed demand for guargum," said Suman Jain, owner, Vasundhara Gums & Chemicals.

Price trend in general is subdued because this Kharif Guar seed crop is expected to be around 2.3 million tons and including Rabi total crop is estimated at 2.75 million tonnes. This is 32.5% more than 2 million tons of crop is 2012-13. In 2011-12 total crop was 14.5 million tonnes. Hence in just two years guar crop has doubled.

Prices reached rs.300 per kg in March 2012 and now it is Rs 50 per kg. "Guar gum prices have been stable for the last one and half months, which has pushed up demand," said , vice president, consulting, Agriwatch.

Orders also started flowing in because, “compositing commodities like CMC and xanthan prices are 30% higher than guar gum,” said an official with one big gum exporter. He said that when guar gum prices were too high, several Indian farmers have increased sowing while Chinese and Australian farmers also experimented with guar sowing. However with prices falling sharply farmers in other countries are losing interest.

With production of seeds likely to be a record, guar gum production will also go up sharply. 2.8 tonnes of guar seed produces 1 ton of guar gum. However with increased production arrivals have also picked up. Now, daily 6,000 tonnes of seeds are arriving in the market and prices in futures are quoted lower than spot indicating that prices will remain subdued. In view of this regulator the Forward Markets Commission () has, “decided to remove the existing special margin of 10% on long side of all running and yet to be launched contracts of Guar Seed and Guar Gum traded on National Exchanges.”

    
Source: Business Standard



Guar exports from India seen surging as price slump spurs demand

Nov 22, 2013

A record plunge in the prices of guar gum, a thickening agent used for oil and gas extraction, may boost exports from India as demand revives among US drilling companies and European food processors.
Shipments may surge as much as 50% to 500,000 metric tons in the year that began on 1 April from 333,000 tons a year earlier, said Rajesh Kedia, director at Jai Bharat Gum & Chemicals Ltd., India’s third-largest exporter.
Shipments increased about 30% to about 210,000 tons in the five months through August, he said.
Prices slumped after India, the world’s largest producer, banned futures trading in March 2012 to curb speculation and record rates cut demand from users. Rising supplies may further pressure prices, lowering costs for users Halliburton Co. and Baker Hughes Inc. Guar prices may continue to fall, Mark McCollum, Halliburton’s chief financial officer said 19 September.
The importers will definitely buy more as prices are attractive, Chowda Reddy, a senior manager at Inditrade Derivatives and Commodities Ltd., said in a phone interview from Hyderabad. Demand will increase.
Guar gum futures slumped more than 50% since 15 May, when the Indian exchanges restarted trading after a 14-month ban.
The regulator suspended trading in March 2012 after prices rallied more than nine fold in one year to Rs.95,920 ($1,527) per 100 kilograms (220 pounds) on the National Commodity & Derivatives Exchange Ltd. in Mumbai.
Falling output
Production is seen exceeding demand for a second year, Kedia said in a phone interview from Bhiwani in Rajasthan.
Processors need 1.8 million tons of guar seeds to meet export demand of 500,000 tons of guar gum, he said. Seed production in Rajasthan, Gujarat and Haryana states, which together account for more than 99% of India’s harvest, is estimated to drop to 12% to 2.15 million tons in the year started July 1 from a year earlier, government data showed.
The erratic rains and long dry spell in western parts of Rajasthan were responsible for the lower production, said J.S. Sandhu, a joint director in the state’s agriculture department. Inventories of about 800,000 tons of guar seeds will make up more any shortfall in output, Kedia said.
India accounts for more than 70% of the global output of guar, which means cow food in Hindi, according to the Multi Commodity Exchange of India Ltd. The seed is also grown in Pakistan and the US
Fracking
Guar gum is used in the pressure-pumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations.
It is made into a thickening gel used to carry sand down a well and into the cracks created from fracturing. It is also used as an ingredient in food emulsifiers, additives and thickeners.
Guar gum for delivery in December fell 0.6% to 14,620 rupees per 100 kilograms in Mumbai on Thursday.
Some of the drilling companies, which began using alternative products to guar gum after the price surge last year, may return to the commodity as availability is assured at lower prices, Kedia said.
If prices continue to fall, there may be a negative impact on guar crop next year, Kedia said. Farmers are disappointed that guar prices have declined below their expectation.

    
Source: livemint.com



UP promoting guar farming to increase agri income

Oct 23, 2013

To maximise farm income and insulate from seasonal losses, government is promoting , especially in the arid region of Bundelkhand. Guar provides better returns to farmers compared to other cash crops, including paddy and wheat.

"We are encouraging state farmers for guar cultivation. Last year also, guar was sown extensively around June, but torrential rains caused extensive damage to the crop," state agriculture minister Anand Singh told Business Standard in an exclusive interview.

The farmers are being encouraged to sow guar after harvesting sugarcane crop.

"Guar is a profitable proposition for farmers. We are confident that the farmers would take up guar cultivation on large scale after they are convinced of its handsome returns," he added.

This season, India's guar output is projected to rise 50 per cent owing to higher acreage and favourable climatic conditions. The output is estimated at 2.25 million tonnes (MT) compared to 1.5 MT last year.

"The government wants to make agriculture lucrative and increase farmers' income through a multi-pronged strategy. The farm income would rise when farmers produce more, get better returns and save money on farm inputs," he said.

"We are working on a plan to popularise 'custom hiring' of tractors and other farm implements, wherein small cultivators can avail of the benefits of farm mechanisation by hiring the implements," he informed.

Meanwhile, the government has also urged the Centre to increase subsidy on solar power implements from the current level of 75 per cent.

Singh expressed concern over paucity of storage facilities in UP, which resulted in wastage of farm produce. "We want to engage private sector in building up warehousing capacity."

UP is targeting agricultural growth rate of five per cent in the current 12th Plan (2012-2017).

National Bank for Agriculture and Rural Development (NABARD) has pegged the state ground level credit potential at over Rs 1,00,000 crore for 2013-14.

    
Source: Business Standard



Guar gum Indias biggest agricultural export item for a second year

Jun 17, 2013

For a second year, has emerged as Indias largest item of . And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director General of Commercial Intelligence and Statistics ().

Guar gum, has seen rising demand from big Western oil companies on its use as a controlling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 2012-13, it has registered 624 per cent rise in exports in value terms.

India is the worlds largest producer of the gum. On average, the country produces 1-1.5 million tonnes of guar annually.

Almost 40 per cent of guar gum produced in the country is used for industrial purposes. In 2012, guar prices in the world markets rose a massive 800-1,000 per cent, chiefly due to large-scale stocking by multinational oil companies over fears of short supplies, following drought in India.

Of Indias total agricultural exports of Rs 120,000 crore in 2012-13, guar gum accounted for 18 per cent, DGCIS figures show. In 2010-11, guar gums total share in Indias overall export of agricultural items was just seven per cent.
 

Basmati and non-basmati rice, traditionally the flagbearers of Indian agricultural exports, have also risen in export value, but have not managed to upstage guar gum as the primary item.

Between 2010-11 and 2012-13, export of basmati rice increased 71 per cent in value terms, while that of non-basmati rice rose a massive 6,000 per cent, pushing India to the pole position in this segment globally in 2012.

The share of basmati rice in Indias total agricultural exports from 2010-11 to 2012-13 dropped from 26 per cent to 16 per cent. However, the share of non-basmati rice showed a considerable jump from 0.52 per cent in 2010-11 to 12 per cent in 2012-13, primarily because of the governments decision to lift the ban on its export.

Another item that logged impressive growth in exports, according to the data, was flowers rising 43 per cent in value terms between 2010-11 and 2012-13, to Rs 423 crore.

    
Source: business-standard.com



India to raise 2013 output of fracking ingredient guar gum -trade

May 30, 2013

India's output of guar, a tiny seed with an outsize role in shale gas extraction, will rise this year as farmers boost planting acres in hopes of good rains, against a backdrop of attractive prices and resumption of futures trade, traders said.

India, the world's top producer and exporter of the seed, fills 80 percent of world demand for guar, which thickens the slurry of water, sand and chemicals pumped into wells during the hydraulic fracturing process used to tap oil and gas from unconventional shale plays.

The United States, whose shale gas surge has transformed it from the world's largest gas importer to a budding exporter, is the top buyer.

India's western desert state of Rajasthan, which contributes more than 80 percent of the country's output of guar, produced 2 million tonnes in 2012.

Planting acreage of the crop will go up by 5 to 10 percent this year, Shikharchand Dugar, a trader from Jodhpur, a key market in the state, told Reuters, although it was too early to forecast output.

"Sowing is definitely going to be higher because prices are attractive," Dugar said. "No other crop would give this much return."

Guar also brings in better returns than other cash crops, such as cotton, or lentils, because it is less labour-intensive, needs less fertiliser and helps improve soil fertility.

Farmers plant guar in the rainy months of June and July, during India's monsoon season. The weather office has forecast average rains this year after the monsoon hits Kerala on the southern coast on June 3.

India's exports of guar gum from January to April more than doubled to 268.42 billion rupees ($4.78 billion) over the same period last year, government data show.

Prospects for the export of guar gum have brightened as fracking is increasingly viewed as a technology with the potential to change the geopolitics of energy, thanks to its dramatic boost to North American domestic gas supplies.

Guar prices are now hovering around 8,750 rupees per 100 kg, well above the cost of production, said Surendra Kumar Yadav, another trader from Rajasthan.

The resumption of futures trading would also help farmers ascertain prices, said Badruddin Khan, associate vice-president of research at Indiabulls Commodities Ltd, a Mumbai-based brokerage.

On May 14, India's market regulator lifted a ban on guar seed and guar gum futures that was more than 13 months old. Authorities suspended the trade in March 2012 after prices spiked more than 10-fold on strong overseas demand from the global shale oil and gas industry.

    
Source: reuters.com



India resumes futures trading in guar gum as crop reaches record

May 15, 2013

India, the world’s largest supplier of guar gum, lifted a ban on futures trading in the commodity used by Halliburton Co. to extract shale gas after a rally in prices spurred farmers to produce a record crop.

The National Commodity and Derivatives Exchange Ltd, or NCDEX, and the Multi Commodity Exchange of India Ltd on Tuesday began trading three contracts each in guar seed and guar gum, according to separate notices on the bourses’ websites. The Forward Markets Commission, the commodity market regulator, suspended futures trading in March 2012 to curb excessive speculation after prices surged ninefold to a record.
“Production of guar seeds in India, which accounts for more than 70% of the global crop, probably reached an all-time high of 2.2 million tonnes in the year ending June,” said Rajesh Kedia, director at Jai Bharat Gum and Chemicals Ltd, the nation’s second-biggest exporter of guar gum. Prices slumped about 70% since futures trading was banned, he said.
“As futures have been relaunched with strict guidelines, we hope speculators are kept at bay so that real players take the benefit of price discovery,” Kedia said.
NCDEX will call for a statement of physical stockpiles owned by clients, who hold 75% or more of the permitted position limits in any contracts, and clients will be required disclose the source of funds for trading, it said.
Guar gum for delivery in June opened at Rs.30,700 ($562) per 100kg (220 pounds) on NCDEX on Tuesday and was last at Rs.28,150, while guar seed opened at Rs.10,400 per 100kg and last traded at Rs.9,460. Guar gum rallied to an all-time high of Rs.95,920 on the NCDEX in March 2012, extending gains into a fourth year.
Cow food
“Futures trading in guar seed and guar gum can effectively provide a benchmark price for the industry in India, and also help the trade and industry functionaries in managing price risks on their spot and forward transactions,” Sumesh Parasrampuria, director for business development at MCX, said in an e-mailed statement.
Guar gum, which means cow food in Hindi, is a thickening agent used in ice creams, drugs and in hydraulic fracturing to extract gas trapped in shale.

Halliburton and Baker Hughes Inc. help drill and complete oil and gas wells using a pressure-pumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations. Guar is made into a thickening gel used to carry sand down a well and into the cracks created from the hydraulic fracturing.

    
Source: livemint.com



Humble guar gum India’s top farm export

Mar 11, 2013

Guar gum has emerged as India's top farm export overtaking traditional heavyweights rice and cotton and looks set to power into the league of top 10 shipments from the country, thanks to the demand from the US oil and gas industry. Latest government data shows that guar gum exports have shot up nearly 139% on a year-on-year basis between April and January with shipments of about $4.9billion. In the previous year, it rose 374% in January alone compared to the same month of 2011. At $4.9billion, guar gum exports during the April-January period were a shade below the exports of plastics and linoleum products at $5billion. Basmati rice exports during the same period totalled $2.7 billion while raw cotton exports stood at $2.6billion. The shift in fortunes for the hitherto unknown guar gum has been phenomenal in recent years. Growing demand for the gum from the petroleum industry in the US has seen a sharp increase in the prices of the commodity, which is commonly known as guar phalli and has a variety of uses in sectors ranging from food to oil and gas drilling.

MAGIC BEANS

Guar, from which gum is extracted, is mainly grown in Rajasthan and Haryana India accounts for nearly 80% of global production of guar gum, now bringing in $4.9 billion Used as controlling agent in oil wells for easy drilling Also used in textile, food & cosmetics industries Guar gum prices rose 1,000% in '12

The sharp rise in exports, thanks to the scorching demand from the US oil and gas industry, which uses the commodity while drilling for shale gas, has helped propel prices to stratospheric levels . The robust return from the crop has changed lifestyles and incomes in Rajasthan and Haryana where it is predominantly grown. TOI had earlier reported the dramatic impact of the sharp increase in guar gum demand and prices on lifestyles in Rajasthan. While the growth in demand may have slowed compared to the dizzy heights scaled in 2012, experts say the commodity will hold up for some time. Last year, prices shot up in the 900% to 1,000% range and a quintal of guar gum fetched more than Rs100,000 while prices for the seed shot up from Rs 3,000 to Rs 35,000. "More or less the demand will be there largely because of the requirements of US shale gas drilling," said Naveen Mathur, associate director commodities and currencies at Angel Broking.

    
Source: economictimes



Guar complex up on higher export data

Feb 02, 2012

The guar complex continued to rally with guar seed contracts on the futures market hitting Rs 12,500 a quintal and that of guar gum Rs 41,000 a quintal on Wednesday. However on the spot market, guar seed prices increased to Rs 12,600 a quintal but guar gum slipped to Rs 40,693.65. “Guar seed gained over Rest 300 across contracts on Wednesday following the release of export data for April-October,” said Ms Vedika Narvekar, Senior Research Analyst with Angel Commodities Broking Pvt. Ltd. On the National Commodities and Derivatives Exchange, guarseed February contracts closed Rs 394 higher at Rs 12,565 a quintal. March contracts increased by Rs 373 to Rs 12,630.     
Source: www.thehindubusinessline.com



FMC may ban 2 more traders over guar price manipulation

Feb 01, 2012

The Forward Markets Commission (FMC) is likely to impose a trading ban for at least six months on two more Rajasthan–based traders, in addition to similar action taken some days earlier against two others. This follows a probe into irregularities in the trading of guar seed and guar gum, largely on the National Commodity & Derivatives Exchange (NCDEX). Around three dozen traders and the entities they represented were probed in this regard. Around 30 were let off with a warning and one, it has been decided, should be exonerated. Of the remaining four, two have already been punished, as reported earlier this month.     
Source: www.business-standard.com



Guar: From obscurity to limelight

Jan 17, 2012

Guar (botanical name: Cyamopsis tetragonoloba) is a leguminous crop that grows best in sandy soils and needs moderate, intermittent rainfall. A hardy, drought-resistant bush, it is planted after the first monsoon showers usually between mid-July and mid-August. The harvest time is late October going into November. As vegetable, the green pods of guar have been consumed in our country for ages. It is also fed to cattle or used in green manure. Grown in tropical and semi-tropical regions, major origins include India, Pakistan, Sudan, Australia, Africa and parts of the US. India continues to be the world's largest producer of guar with the output of the crop expanding by leaps and bounds in recent years and currently stands at 14-15 lakh tonnes. Rajasthan is the dominant producer accounting for close to 80 per cent with Gujarat, Haryana, Punjab, Madhya Pradesh and Uttar Pradesh pitching in.     
Source: www.thehindubusinessline.com



Guar up despite higher crop estimate, additional curbs on futures trade

Jan 13, 2012

The upward momentum in guar prices appears to be unrelenting despite news of an upward revision in crop estimates and additional curbs on futures trade. This week, the Rajasthan Government announced revised production estimates for guar seed at 12.1 lakh tonnes from the earlier estimate of 11.4 lakh tonnes. The State is a major producer of the commodity. On the other hand, commodity exchanges revised open position limits on guar complex, in a yet another measure to rein in prices. The new position limits come into effect from January 21. But the guar complex hit the 4 per cent upper price limited on the National Commodity and Derivatives Exchange in early trade on Thursday. “There is no chance of a fall in guar prices. Arrivals are low and demand is very strong,” said Mr Rajesh Ghiya, a broker at the Jaipur guar market.     
Source: www.thehindubusinessline.com



Guar seed output in Rajasthan marginally up

Jan 12, 2012

The government of Rajasthan has revised the production forecast for guar seed marginally upwards in the second advanced estimates, announced late Tuesday evening. The state contributes nearly 50 per cent of the national output. With this revision, the guar seed output is estimated to rise to 1.21 million tonnes (mt), as compared to 1.14 mt in the first advanced estimate made by the government in September 2011. Total guar seed production during the last season was recorded at 1.2 mt.     
Source: www.business-standard.com



FMC measures fail to stall rise in guarseed, gum futures

Jan 12, 2012

The continuous upward surge in guarseed and gum futures has prompted a series of measures from the commodity markets' regulator, Forward Markets Commission (FMC). But these measures have failed to stall the sustained rise. Guarseed and gum futures on the National Commodity and Derivatives Exchange have been hitting the 4 per cent upper price limit almost daily. “There is nothing wrong in prices rising but there should be no trading irregularities. We are trying to see what more we can do on this matter,” Mr Ramesh Abhishek, Chairman, FMC, toldBusiness Line. The last action taken by FMC was to issue showcause notices to five members after it found irregularities in guar futures trade following a probe conducted by its team.     
Source: www.thehindubusinessline.com



Divided view on why guar is rallying

Jan 04, 2012

The guar complex has resumed its rally with prices touching the upper ceiling on Tuesday. Exporters and analysts, on the other hand, are divided in their views over the rise. While exporters termed it as speculation, analysts said it was due to supply tightness. Guarseed, a product of guar or cluster beans, for January delivery hit the Rs 7,500-mark and closed at Rs 7,560 a quintal, up Rs 226 over Monday. February contracts increased to Rs 7,700 (up Rs 242), while March contracts were at Rs 7,799 (up Rs 223). In the spot market at Jodhpur, guarseed was quoted at Rs 7,322.70 a quintal. Guargum, a derivative of guarseed, increased by Rs 566 to Rs 24,881 a quintal for January delivery. February contracts were up by Rs 678 at Rs 25,395 and March rose by Rs 981 to Rs 25,490. In the spot market, guar gum was quoted at Rs 24,302.30 in Jodhpur.     
Source: www.thehindubusinessline.com



India guar seed to trade higher on lower production concerns

Jan 04, 2012

Guar traded up amidst high volatility as sentiments remained moderately firm. However, at these high levels, there are expectations of some profit booking also with exporters waiting for dips for fresh queries. Lower production prospects, moderate arrivals and a strong Dollar have been keeping the market sentiments strong. Traders however expect short term very high volatility to continue due to the recent additional margin impositions on the Buy side. Lower productions prospects than earlier estimates, overall strength in Dollar aiding exports and reports of lower stocks are likely to support the market sentiments in medium term however.     
Source: www.commodityonline.com



Guar gum, golden commodity in 2011

Jan 02, 2012

In 2011, stock markets failed to shine and gold lost a bit of its lustre, though the latter ended with a 31 per cent gain. So, which was the commodity that gave the best returns last year? At the beginning of last year, no one could have given it even a semblance of a chance. The winner then is guar gum, a by-product of guarseed derived from guar or cluster beans. Prices of guar gum increased over two-and-a-half times in 2011 and Rs 100 invested in the product on January 1 last year would have fetched an additional Rs 254.60 on December 31. Smart investors would have got Rs 22 more had they sold on December 28. Between January 2 and December 31, its price increased to Rs 22,568.45 a quintal from Rs 6,364.30. Guar gum is extracted from guarseed and is used as an emulsifier or thickener in a wide range of food products. Industries such as textiles and printing use it for its thickening properties, while oil drilling companies use it for exploration purposes.     
Source: www.thehindubusinessline.com



Guar gum price may rise on higher export demand

Dec 29, 2011

The steadily rising export demand may push up guar gum prices to Rs 30,000 a quintal in the new year from the present Rs 23,000 per quintal, according to an industry expert. “Guar gum prices have risen three times in the local market and five times in the export markets in 2011 following rising demand against low inventories. The strong demand from overseas markets, especially from oil companies, may take the guar gum prices to Rs 30,000 a quintal in 2012 from the prevailing Rs 23,000,” commodities and textile exporter Mr Vinit Chopda told PTI here on Wednesday. Guar seed and gum prices continued its upward march despite commodity regulator Forward Market Commission (FMC) imposed a 30 percent margin on buyers to curb volatility recently, Mr Chopda said.     
Source: www.thehindubusinessline.com



Guar price rise: Probe panels report soon

Dec 26, 2011

The continuous surge in guarseed prices with the futures contract hitting upper circuit has raised alarm bells about excessive speculation and a handful of players cornering the product. But Forward Markets Commission Chairman, Mr Ramesh Abhishek, said there was no major concentration of buyers and sellers but fundamentals are in favour of a price rise. “Fundamentally, there is very little left-over stock,” Mr Abhishek said indicating that the rise in prices is due to a strong demand for guar gum.     
Source: www.thehindubusinessline.com



FMC probes rise in guargum price

Dec 26, 2011

The Forward Markets Commission (FMC) has commenced investigations into the alleged manipulation in prices of guargum and guarseed on the National Commodity & Derivatives Exchange (NCDEX). The market regulator has sent investigation teams to major trading centres for the commodity — Rajasthan, Delhi, Madhya Pradesh and Uttar Pradesh — to check the possibility of price rigging. NCDEX officials have joined these teams and the exchange is playing its part in the probe, as a third of its volumes comes from guargum and guarseed trade. “We have sent teams to leading trading centres across the country to check traders’ accounts. The teams are selected in coordination with exchange officials,” said FMC Chairman Ramesh Abhishek.     
Source: www.business-standard.com



India guar seed under pressure on imposition of additional margin

Dec 20, 2011

Rates fell further for Guar as imposition of another 10% additional margin on the Buy side brought prices down towards the end of the week. Traders expect trend to remain moderately weak till Dec contract expiry after which trend could turn firm again on export demand. Fall in Dollar vs Re too could have a temporary bearish impact in the short term. Lower productions prospects than earlier estimates, overall strength in Dollar aiding exports and reports of lower stocks are likely to support the market sentiments in medium term however. Anticipations of further rise in exports in coming weeks could aid the uptrend further—as per traders.     
Source: www.commodityonline.com



Guarseed, gum prices sky-rocket on export rally

Dec 15, 2011

Unrelenting demand driven by oil rigging companies has led to guarseed and guar gum prices sky-rocketing in spot and future markets. On the spot market, guarseed prices topped Rs 6,000 a quintal on Wednesday, while guar gum crossed the Rs 20,000 a quintal barrier. In Jodhpur, spot guar gum ended at Rs 20,800 a quintal on Wednesday, up from Rs 19,876.30 on Tuesday. Guarseed prices closed at Rs 6,300 a quintal. Prices of both have increased by about 25 per cent since the beginning of this month.     
Source: www.thehindubusinessline.com



India guar seed to remain firm on strong fundamentals

Dec 15, 2011

No change in Fundamentals were there as Guar continued hitting the Upper Circuit on rising export demand amidst reports of expected fall in production estimates. Imposition of 10% additional margin on the Buy side did not have any effect on the rising prices as overall Fundamentals remained Bullish. A strong Dollar vs Re supported the export factor even more. Lower productions prospects than earlier estimates, stronger Dollar aiding exports and reports of lower stocks are supporting the sentiments. Anticipations of further rise in exports in coming weeks could aid the uptrend further as per traders.     
Source: www.commodityonline.com



India guar seed likely to edge higher on firm export demand

Dec 14, 2011

Guar continued hitting the Upper Circuit on rising export demand amidst reports of expected fall in production estimates. Imposition of 10% additional margin on the Buy side did not have any effect on the rising prices as overall Fundamentals remained Bullish. A strong Dollar vs Re supported the export factor even more. Lower productions prospects than earlier estimates, stronger Dollar aiding exports and reports of lower stocks are supporting the sentiments. Anticipations of further rise in exports in coming weeks could aid the uptrend further as per traders.     
Source: www.commodityonline.com



Guarseed futures hit new high on low inventories

Dec 05, 2011

Guarseed futures prices rose to record high today by adding Rs 64 to Rs 5,429 per quintal, on brisk buying by traders following a rising demand against low inventories in physical markets. Traders said fall in output created low stocks position and pushed up the guarseed futures prices to record high levels. Strong demand from guargum and exporting units, too, enthused the trading sentiment to some extend. At the National Commodity and Derivatives Exchange, guarseed prices for January contract rose by Rs 64, or 1.19%, to touch new peaks level of Rs 5,429 per quintal, having an open interest of 1,20,820 lots.     
Source: www.business-standard.com



DGFT may levy 20% export duty on guar gum

Nov 25, 2011

The Directorate General of Foreign Trade (DGFT) is considering levy of 20 per cent export duty on guar gum, a derivative of guar seed, with application in oil drilling, paper, textiles, mining, explosives, ore floatation and many other industries. “We have received representations from a section of exporters to levy a minimum 20 per cent export duty, after withdrawing the six per cent subsidy currently provided for guar gum exports. We are studying the proposal,” said an official. The government introduced six per cent subsidy to promote exports five years ago, when price of the commodity was ruling at Rs 700-800 per kg. Now, the prices have surged to Rs 15,000 a kg.     
Source: www.business-standard.com



India guar seed to witness volatile trend

Nov 23, 2011

Guar traded with high volatility as profit booking was noted after the huge rise in rates seen the last few days. Rising export demand for Guargum, strong Dollar vs Re and possibilities of some fall in production from the earlier estimates supported the market sentiments even as arrivals of the new crop continued fro Rajasthan and Haryana. Gujarat arrivals to start over next few days. Uncertainties in the European markets has been affecting the exports to some extent but traders expect the exports to pick up in coming weeks till year end. Low production and stock prospects could support rates in medium term.     
Source: www.commodityonline.com



India Guar Seed Likely To Gain On Firm Exports

Nov 21, 2011

Guar traded with high volatility as profit booking at higher levels was noted. But it found some support from improved export queries. Arrivals of the new crop from Rajasthan and Haryana continued but traders expect a rise in exports in coming weeks to determine the market trend. Gujarat arrivals to start over next few days. Fall in export demand due to uncertainties in the European markets has been pressurizing market sentiments as traders wait for exports to rise. Low production and stock prospects could support rates in medium term though.     
Source: www.indian-commodity.com



Gur ends steady on low buying interest

Nov 21, 2011

Wholesale gur (jaggery) prices remained flat in the national capital today amid poor buying support and restricted supply. The Muzaffarnagar and Muradnagar gur markets also ended flat, having done little business. Marketmen said arrivals and offtake were almost at par, so prices held steady at around their previous levels. The following are today’s jaggery quotations (in rupees per quintal): Chakku 2,600-2,650, pedi 2,700-2,750, dhayya 2,750-2800 and shakkar Rs 2,900-3,000.     
Source: www.thehindubusinessline.com



Guar seed likely to gain on firm spot demand

Oct 31, 2011

Demand from stockists keeping sentiments positive or Guar even as new crop arrivals pick up. New crop arrivals start fro Haryana. Rajasthan arrivals yet to pick up. As per First Advanced Estimates of Kharif Crop in Rajasthan, the sowing area is 29.07 lakh hectares compared to 30 lakh ha last year. Pro-duction expected at 11.37 lakh tonnes vs 15.46 lakh tonnes in 2010-11(Directorate of Agriculture, Rajasthan).     
Source: www.commodityonline.com



Guar traders anticipate higher seed production despite lower acreage

Oct 28, 2011

Despite registering lower acreage of guar this season, gum traders are optimistic of attaining higher production. Guar gum traders maintained, despite shortage of area, timely rains in September would assist the productivity of the crop, thus raising its output prospects. As per guar traders, guar seed production this year is estimated to be 1.4 million tonnes (14 million bags) compared to 1.2 million tonnes (12 million bags) last year, thus reflecting increase of 16 per cent.     
Source: www.business-standard.com



FSSAI to synchronise operations with 12th Plan, says Gaur; explains FSS Act

Sep 26, 2011

The Food Safety and Standards Authority of India (FSSAI) will be synchronising its operations with the upcoming Twelfth Five Year Plan. In a proposal sent to the Planning Commission, the FSSAI has sought setting up of a National Science and Risk Assessment Centre. This, according to the FSSAI, will be the nodal lab for the country, which will entail an investment of Rs 150 crore. This was informed by V N Gaur, interim chairman and CEO of FSSAI. Gaur was addressing the Industry Regulatory Meet, arranged by the Mumbai Chapter of Association of Food Scientists and Technologists India (AFSTI). The AFSTI has been playing an active and important role in facilitating the transition of the industry from the old Prevention of Food Adulteration Act, 1954, (PFA 1954) to the new Food Safety and Standards Act, 2006, by regularly holding regulatory meets and mediating between the industry and the regulatory FSSAI.     
Source: www.fnbnews.com



Guarseed To Remain Supportive On Supply Concerns In Near Term

Aug 08, 2011

Guarseed futures are likely to be supportive at every decline on the heels of weak sowing progress in Rajasthan along with strong export demand of guargum. As per latest release from Rajasthan State Agriculture, the total sowing acreage of guarseed in the current year was reported at 17 lakh hectares as on 02nd August 2011, down almost 32% from the last year in the same period. This was due to delayed monsoon in the major producing areas of guarseed in Rajasthan such as Barmer , Bikaner and Jodhpur. Traders also mentioned that poor production estimates of guarseed in Pakistan might also divert the international buyers of guargum towards India. The total guarseed production in Pakistan is likely at 10-12 bags against 17-18 lakh bags reported last year.     
Source: www.indiainfoline.com



Guarseed To Scale New Highs In Early Trades

Jul 25, 2011

Strong buoyancy is likely to continue in guarseed market on the account of deficit rainfall in major guarseed producing regions along with strong export demand of guargum . The NCDEX guarseed futures swelled by almost 14% in last one week. Traders are expecting Rs. 5000 per quintal in the coming days. As per market sources, the major producing areas of guarseed such as Barmer , Bikaner and Jodhpur in Rajasthan have reported deficit rainfall so far in the current year. Similar trend was also seen in Haryana as areas such as Hissar , Rewari and Sirsa have witnessed weak rainfall in the current year. Traders mentioned that poor rainfall might reduce the guarseed production by almost 40% in the current year to around 82-85 lakh bags ( 1 bag = 100 kgs ) against 120 lakh bags that were reported by traders in the last year.     
Source: www.indiainfoline.com



All bets are off: guar gum prices set to stay high, says expert

Jul 21, 2011

There has been no let up in the soaring prices for guar gum, with little hope of a downward trend emerging in the coming months, warns a hydrocolloid expert. Guar gum, a galactomannan from the seed kernel of the guar plant Cyamopsis tetragonoloba, is used as a thickener and stabiliser in baked goods as well as in a range of other food products including ice-cream, sauces and beverages. Some 80 per cent of the world’s supply hails from India, with Pakistan the next biggest supplier.     
Source: www.ap-foodtechnology.com



Guar emerges rising star in commodities trade

Jul 14, 2011

Guarseed and guargum have really been rocking in the commodities market since the beginning of the year. Guarseed has gained nearly 65 per cent, while guar gum, a derivative of the seed, has nearly doubled. After being quoted at Rs 2,360 a quintal at the beginning of the year, guarseed on Wednesday closed at a record Rs 3,900, a gain of 62 per cent since January 1. In fact, over the last few weeks, guarseed prices have been recording new highs every day. On Tuesday, it closed at Rs 3,892.On the National Commodities and Derivatives Exchange (NCDEX), guarseed prices were marginally down on Wednesday. The July contract closed at Rs 3,892, while August ended at Rs 3,962 and September at Rs 4,011.     
Source: www.thehindubusinessline.com



Indian guar gum exporters resent China's bias news

Jun 10, 2011

Guar gum manufacturers in India are resenting China's discriminatory treatment of imposing differential duties on guar gum split and power imported from this country while importing the same from Pakistan duty-free. China, Indian exporters say, also imposes high customs duty on export of value-added products from India and encourages imports of raw materials (guar gum splits) by keeping duty at half the rate.     
Source: www.domain-b.com



China imposes duty on guar exports

May 31, 2011

Guar gum exporters from India are at a distinct disadvantage. China has imposed customs duty of 7% and 15% on guar exports from India, the world's largest exporter. But import from Pakistan is duty free. This preferential treatment is costing India in global market share. The guar splits and guar powder attract a duty of 7% and 15% respectively. China accounts for 25% to 30% of the total exports of guar gum splits. Due to the higher duty on guar powder, India's exports to China is decreasing while exports of refined guar gum splits is increasing.     
Source: economictimes.indiatimes.com



No-pesticide condition vexes guar gum exporters

May 23, 2011

Indian food-grade guar gum export to the European Union is set to take a hit as the commerce ministry has directed exporters that there should be absolutely no pesticide content in the product. Till now, the commerce ministry had allowed a 0.01 milligram of pentacholorophenols (PCP), a pesticide, in a kg of food-grade guar gum. The move comes at a time when the industry is flooded with orders from EU countries. "In FY10-11, the guar gum industry earned an export revenue of Rs 2,000 crore. And this year, the export trend is extremely positive.     
Source: economictimes.indiatimes.com



Guarseed gains on overseas demand

May 19, 2011

Guar futures settled marginally high by 0.06% on Monday owing to better offtakes amidst strong overseas demand. A record export during the FY 2010-11 is the only factor that is supporting the bullish trend in Guar complex in the current crop season (Oct-Sep 2010-11). Forecast for the 2011 South-west monsoon rainfall (Released on 19th April)IMD'S long range forecast for the 2011 south-west monsoon season (June to September) is that the rainfall for the country as a whole is most likely to be Normal (96-104% of Long Period Average (LPA)). There is very low probability for season rainfall to be deficient (below 90% of LPA) or excess (above 110% of LPA). IMD will update the above forecast in June 2011 as a part of the second stage forecast.     
Source: www.commodityonline.com



Guarseed rises on export demand

May 06, 2011

Guar seed spot as well futures continued to add to the gains of the day and hit new historical high of Rs. 3,226 and ended 0.80% and 0.63% higher respectively on Wednesday on robust export demand amidst steady supplies. Arrivals were almost nil in Ganganagar, where stockiest are not offloading the stocks on expectations of further rise in the prices. A record export during the FY 2010-11 is the only factor that is supporting the bullish trend in Guar complex in the current crop season (Oct-Sep 2010-11).     
Source: www.commodityonline.com



Guar gum exports likely to be at record this year

May 05, 2011

Guar gum exports from India are expected to be at record high in the current year amid robust demand from oil producing countries. The soaring overseas demand is believed to spurt the prices of the commodity, which is used as a lubricant in exploration wells and also used for fracturing of oil wells. According to the latest figures provided by Agriculture and Processed Food Products Export Development Authority (Apeda), so far India’s guar gum exports for the period April-December 2010 surged 82 per cent to 279,197 tonnes as compared to 153,404 tonnes recorded during the same period last year. The rise in exports has come as a booster for the gum prices, which have shot up to Rs 9,050 a quintal in the Bikaner spot market - one of the prominent markets for the commodity. Prices have gained nearly 12 per cent in the past one month.     
Source: www.business-standard.com



Guarseed falls on weak export demand

Apr 20, 2011

Guarseed and Guargum futures ended 2.95% and 3.08% lower on expectation that monsoon this season would be good. Although the first Long Range Forecast (LRF) for the monsoon season June-September 2011 will be released by the Indian Metrological department’s (IMD) on 19th April, 2011. IMD normally release two operational monsoon forecast, first in April and then in June. In the current crop season, export demand was the only factor which had drived Guar prices higher despite bumper crop. However, from April onwards monsoon would also play a significant role in determining the trend in Guar prices.     
Source: www.commodityonline.com



Guar gum export increases 75%

Mar 24, 2011

Uttar Pradesh and Rajasthan farmers are raising a cheer each time a global oil major announces exploration plans. Guar gum, grown in north India and used as an important lubricant in the drilling of oil wells across the world, has seen a 75% jump in export as the largest producer, India, is currently the only supplier to the world market. This rise in global demand, coupled with tighter supplies this year, has led to bumper profits for local producers.     
Source: economictimes.indiatimes.com



Guarseed gains on extended buying

Mar 17, 2011

Guarseed yesterday we have seen that market has moved 1.96% on increased buying by local millers and exporters. Also good demand from millers and stockists was there helping the prices to remain firm. India is the world's largest producer and exporter of guar gum and meets 80 percent of the global demand.     
Source: www.commodityonline.com



Guarseed gains on export demand

Mar 08, 2011

Guar complex which had gained by more than 17% since the beginning of the year owing to export demand witnessed long liquidation and settled lower by more than 5% during the last week. Decline in the fresh orders from the overseas buyers at high price levels mainly underpinned the sentiments.     
Source: www.commodityonline.com



Guarseed trades up on domestic demand

Nov 23, 2010

The guar seed and gum futures traded positive on Saturday on extended buying. The arrivals across India are consistently increasing capping any steep gain in the prices. However, good demand for guar and its by products across the spot markets is supporting the up trend. The guar seed and guar gum futures are expected extend the positive trend for the day. The major exporters and the guar gum manufacturers are actively buying at the spot as the arrivals are gaining momentum. More exporters are turning towards India to meet their requirement based on which the exports are likely to increase by 20%. Ex-tended arbitrage activity is also likely to support the prices to move upwards. The crop harvesting is complete across the country which will indicate further increase in arrivals The arrivals into markets are in full swing across the major trading areas.     
Source: www.commodityonline.com



Guar Seed zooms on domestic demand

Nov 19, 2010

The guar seed and gum futures slightly gained Thursday on reemergence of buying at the futures. The increasing arrivals across India are restricting any steep gain in the prices. However, good demand across the spot markets supported the prices. Outlook The guar seed and guar gum futures are expected to remain range bound for the day. The weather conditions have recovered in Rajasthan which will support the arrivals to gain momentum across the major spot markets.     
Source: www.commodityonline.com



Guar gum exports may shoot up 15% in FY11

Nov 12, 2010

With the oil-drilling industry in the US picking up and a crop damage in Pakistan, guar gum exports from India is expected to go up 10%-15% in the current finanial year.Industry estimates that in FY11 the export will be in the range of 2.50-2.6lakh tonne as compared to 2.20lakh tonne in FY10. According to preliminary figures released by Shellac & Forest Producers EPC, estimated figures of exports in the first 8 months of FY11 have been pegged at Rs623.32 crore as compared to Rs395.95 crore in the year-ago period.     
Source: The Economic Times



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