Guar price may dip on good crop

Rains in Rajasthan along with increase in the sowing and good crop in Pakistan are expected to bring down prices of guar seed.

The price has been falling in the last fortnight reaching Rs 1,740 a quintal today from Rs 1,927 a quintal on August 10.

This bearish sentiment in the market is expected to lead to another fall of Rs 75 a quintal in the next week. Traders and analysts believe that beyond this level the prices will not slip.

Rajasthan contributes 70 per cent of the total production in the country. India produces about 50-55 lakh tonne of guar seed a year with Rajasthan, Haryana, Punjab and Madhya Pradesh being the major producing states.

"Prices are declining in tandem with the nearing crop arrival time. Good rainfall in the state is a big contributing factor in bringing the downward pressure on the guar seed prices," said Sanjay Periwal, a Jodhpur-based trader.

The crop normally arrives by the first week of October. Rajasthan has witnessed extra sowing of guar seed this year.

"There has been an additional sowing in places like Jaisalmer, Barmer and Jodhpur. Bikaner has an increment of 15-20 per cent in sowing this year which will result in higher production," said R.K.Chandak, a Bikaner-based trader.