GUAR…… “U” TURN AHEAD

Guar gum enjoys prominent position in the exports of minor forest products. India exports guar gum in various forms to all parts of the globe. More than 80 per cent of exports of minor forest products are accounted for by guar gum.

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The government has appointed Shellac and Forest Products Export Promotion Council (SHEFEXIL) as the canalising agency for export of guar gum to Europe. “Guar gum exports to European Union, originating in or consigned from India and intended for animal or human consumption have been allowed subject to endorsement by SHEFEXIL.

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Around 90% of the total Guar Gum production is exported to countries like China,US, Germany and France.

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Sowing and Harvesting Season….

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The crop is sown from June and extends up to July. It is harvested from October and the peak arrival time continues till the end of December.

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Guar complex mostly follows the seasonal pattern in its movement, but quite volatile during March- September. As given in the above chart, guar seed prices tend to remain low during January, June and September months. The price movement starts its bull run from February, the time of lean arrivals & reaches its peak in the month of July. Later on, during August the reports of sowing come into scenario which affects the prices. The arrival pattern during October & December further brings the prices down.

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The early south- west monsoon forecasts and progress of monsoon from June to September influence the price movement. Later on, arrival pattern and demand from stockiest affect the prices.

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The Road Ahead: Considering the supply side in the current crop season i.e. October 2009-September 2010, production is estimated to be lower at around 3-3.5 million bags compared with 8.5-9 million bags in 2008-09. Carryover stocks of last year for Guar seed stands at around 3-3.5 million bags. Thus, total supplies for 2009-10 stands at around 6 million bags, which is far below the total consumption of 7-7.5 million bags. Guar gum stock with the stockiest currently stands at around 150,000 tonnes. Guar futures have already discounted by almost 15-18% since the beginning of the year due to slowed down off-takes by millers. They were not buying Guar seed at high prices as they have huge stocks of Gum & also due to huge disparity in the price of seed and gum.

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However, after the futures finishing their correction phase, the current scenario signifies that the stockiest have started stocking Guar seed at the current low prices on expectations that the prices would rise further due to a drop in output. However, further price rally would depend on the overseas demand for Guar gum which is expected to pick up which may lead prices to breach the level of 5100 in medium term.

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Stay Tuned for More Updates :)

3 responses to this post.

  1. Posted by chemtotal on May 23, 2010 at 10:03 PM

    Guar Gum is an important ingredient in producing food emulsifier, food additive, food thickener and other guargum products. India is the largest producer of guar gum products. Its guar gum exporters, guar gum manufacturers, guar gum products suppliers, foo emulsifier exporter have reached to many countries and today there is a lot of demand for indian guar gum products, food additives, food thickener and other allied guar gum products.

    Guar gum is extracted from the seed of Cyamopsis tetragonoloba, an annual leguminous plant originating from India and Pakistan, also cultivated in the United States. Guar Gum grows best in sandy soils, in areas of West, Northwest India and parts of Pakistan, which are ideal for it’s farming. Jodhpur City in the North Western state of Rajasthan in India is the most important processing center of Guar Gum and contributes approximately 40% of the world’s Guar Gum supply. Indian Guar Gum Products are exported and supplied all over the world by different guar gum exporters, guar gum manufacturers, guar gum suppliers and guar gum exporter. Many food emulsifier exporter also exports superior quality food additive, food thickener and food emulsifier.

    Guar gum is an emulsifier, thickener, and stabilizer approved for use in a wide range of foods, cosmetics, and pharmaceuticals. Gum Technology Stabilizers are carefully controlled blends of various food ingredients. They are mostly natural vegetable gums which come from sources such as seeds, plant exudate and marine plants. These may be blended with other hydro-colloids or food ingredients such as fats or emulsifiers.

    India is famous for guar gum products and food additives. It is sold as a white to yellowish odorless powder, which is available in different viscosities depending on the desired one. One advantageous property of guar gum is that it thickens without the application of heat. Guar Gum has the following properties, which make it useful in variety of applications.

    Easy solubility in cold and hot water
    Film forming property
    Resistance to oils, greases and solvents
    Better thickening agent
    Water binding capacity
    High viscosity
    Functioning at low temperatures

    Industrial application of guar gum includes the textile industry where guar gum’s excellent thickening properties are used for textile sizing, finishing and printing. In the paper industry Guar is used as an additive where It gives denser surface to the paper used in printing. And in the explosive industry guar is mixed in Ammonium Nitrate, Nitroglycerine and Oil explosives, where it helps maintain the explosive properties of the product even in wet conditions.

    In the food, pharmaceutical and cosmetics industry, Guar Gum is used as an effective binder, stabilizer, dis-integrator and thickener. In bakeries, diaries and in production of meat and, dressings and sauces, Guar is an important natural food supplement with high nutritional value, for weight gain and cholesterol reduction. In cosmetics, especially shampoos and toothpastes, guar gum is used primarily as a thickening and suspending agent. In beverages, it is used as stabilizer for preparing chocolate drinks and juices. Guar is also widely used in tobacco, leather, insecticides and pesticides, crayons, adhesives etc. Guar gum comes in different forms – from seeds to powder. Main types of Guar Gum include Guar Seed, Un-dehusked Split, Refined Split, Pulverized Guar Gum Powder, Guar Protein and Guar Meal.

    Reply

  2. Posted by praful on July 13, 2010 at 1:43 PM

    I been holding gaur gum more than five years i have 50 tonne my average is 5200.I need to know can i sell it off or can i wait.

    Reply

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