Guar gum exports may rise 7-10%

The country's guar gum exports in 2007-08 are seen up 7-10 per cent at over 250,000 tonnes, on expectations of strong overseas demand amid rising crude oil prices, according to Jodhpur-based guar gum exporters.

They expect guar gum exports to rise in the second half of the current financial year despite a fall in the first half.

"Expectations of rise in demand from food, and crude oil factories, and industrial segments amid recovering dollar are likely to boost exports," said Avinash Rathi, managing director of Jodhpur-based Shrinath Gum and Chemicals.

Guar gum is used as a stabiliser, emulsifier and thickener in food, textile, mining, pharmaceuticals, and cosmetics. Demand from emerging export markets is also likely to broaden the country's export prospects, said Jodhpur-based exporter Murlidhar Dhoot.

According to Rajesh Kedia, director and chairman, Jai Bharat Gum and Chemicals, guar gum exports in the eleven months ended February stood at around 240,000 tonnes, up 8 per cent from the same period a year ago.

While according to a latest data by Agricultural Processed Food Products Export Development Authority, guar gum exports in the first six months (April-September) was down 12 per cent at 86,402 tonnes.

The fall in April-September was due to lower returns because of the rupee appreciation and higher prices as compared with Pakistan, the second largest producer and exporter of gum.

"Pakistan was quoting lower prices than India. But the country's low stocks limited exports," Dhoot said.

Another factor that dragged down exports was European Union rejecting Indian guar gum shipments after a shipment in august was found containing dioxin beyond permissible limit. However, the issue was resolved and EU started accepting guar gum shipments from India in November.

Nonetheless, traders said high guar stocks in India will aid exports in 2007-08.

Guar seed output in 2007-08 is pegged at 8-8.5 million bags, up from 6.5-7.5 million bags previous year.

India produces around 80 per cent of the world's guar gum, which is extracted from guar seed.