FMC may decide on re-listing guar futures by mid-Aug

Forward Markets Commission (FMC) today said it will take decision on re-listing of the banned guar futures by mid-August after assessing the sowing of the crop.

"We are waiting for sowing data of guar. We will take decision on re-listing of guar futures by mid-August after seeing the data," FMC Chairman Ramesh Abhishek told reporters on the sidelines of a FICCI event.

Earlier this year in March, the commodities market regulator had banned futures trading in guarseed and guargum,  which is increasingly used in oil and gas industry, to curb price volatility and speculation.

Analysts said guar gum price in the futures market had crossed Rs 90,000 per quintal in March, while rates were ruling at around Rs 8,000 per quintal prior to 2009.

Guar, which needs less water, is usually planted after June 15 till around July-end. Due to rise in guar prices and delay in monsoon, farmers in major producing states Rajasthan, Gujarat and Haryana have sown guar this year, experts said.

They further said that guar acreage is expected to increase by 28% to 45 lakh hectares in the ongoing Kharif season from over last year.

Guar gum is extracted from guar seed, production of which is around 10 lakh tonnes in the country.

India is the the world's biggest exporter of the commodity and accounts for 80% of the world's guar production.