Guar seed price may rise 25% on low output

The price of guar seed, an important cattlefeed crop, may rise by another 25 per cent by December, due to record low output estimates for this kharif season. It has already jumped 10 per cent in one month, to trade at more than Rs 2,300 a quintal in Rajasthan, the major producer.

The commodity for Jodhpur delivery in November surged 8.7 per cent on the NCDEX at Rs 2,359 a qtl two days earlier, as against Rs 2,171 a qtl a month ago. Similarly, Jodhpur delivery on a November contract for guar gum, a natural food thickener obtained through guar seed extraction — apart from processed foods, it is also used in the paper, textile, explosives and oil industries — jumped 6.42 per cent to Rs 4,923 a qtl from Rs 4,626 a qtl. Output of the rain-dependent cattlefeed crop is estimated to be no more than 2-2.5 million bags (of 100 kg each) this season, barely a fourth of last season’s output, due to lower monsoon rain in the beginning of the sowing season.

“Sowing was affected by over 60 per cent in the major producing centres, including Sri Ganganagar, Hanumangarh and Haryana, due to the lack of rain in June. The resumption of rainfall in July was too late for sowing. Later, hot wind further damaged the remaining standing crop. As a result, the guar seed crop is likely to remain under two million bags this season,” said Jodhpur-based guar trader, Purshotam Mundra. Barely 1,500 bags have arrived in the market so far, compared to 70,000 bags by this time last year.