Guar gum India's No 1 farm export

India’s much neglected and little-known guar gum is now its biggest agricultural item of export, upstaging the much better known items of basmati and non-basmati rice.

Of the total farm export of Rs 82,480 crore in 2011-12, the share of guar gum was around 20 per cent, while that of basmati rice was 18.7 per cent and non-basmati rice 10.5 per cent. A year before, the share of guar gum was just seven per cent, while that of basmati rice was 27.2 per cent. Non-basmati export was banned.

In 2007-08, when export of both types of rice was allowed, the share of basmati rice in total agriculture exports was 9.3 per cent, non-basmati rice at 5.4 per cent and guar gum at 1.4 per cent.

In 2011-12, the export of 700,000 tonnes of guar gum fetched more in the international market than the export of either 3.2 million tonnes of basmati rice or 4.1 mt of non-basmati rice. Guar gum fetched India Rs 16,356 crore, basmati rice Rs 15,450 crore and non-basmati rice fetched Rs 8,668 crore during the period, showed provisional data recently released by the Directorate General of Commercial Intelligence and Statistics.

Demand for guar gum, cultivated largely in Rajasthan, has been rising ever since Western nations started using it as a controlling agent in oil wells. It facilitates easy drilling. The stupendous rise in its export, along with that of non-basmati rice, has propelled India’s overall farm export to Rs 82,480 crore in 2011-12, double the previous year.

The ban on non-basmati rice export was lifted in October 2011, after a long period of restriction. The earlier normal year for its export was 2007-08. In rupee terms, in 2007-08, the share of non-basmati rice in total agri export was 9.4 per cent, while in 2011-2012, it rose to just around 10.5 per cent. As of now, guar gum, basmati rice and non-basmati rice are the three main components. Interestingly, guar gum export has happened without any tangible government support, while for both basmati and non-basmati, the government has been providing all sorts of inputs.

“This clearly shows that a stable export market is imperative to boost exports," an official said.