Guarseed prices fall on rise in acreage

Expectation of a better crop in the current season has brought down prices of guar seeds, the main ingredient for the emulsifier industry.

Prices of the guar seeds have fallen by about Rs 100 per quintal in the last 20 days in Rajasthan and Haryana.

Guargum exporters and traders expect at least 20 per cent increase in the acreage under the crop in Haryana this year after a good first spell of monsoon showers.

"Although late sowing of guar was reported from Haryana as it began only after June 15, the first spell of rains have covered all the growing areas in the Hisar region," leading exporter Rajesh Kedia of Jai Bharat Gum and Chemicals said.

However, in Rajasthan the progress in sowing is not as good as in Haryana, he added.

Overall, there is likely to be at least 20 per cent increase in the acreage over last year's coverage, Kedia said, refusing to speculate about production.

"It is too early to estimate about output as the first spell is just over. Next two spell of rains would be crucial, particularly the August-end period is very critical for production," he said.

Guar crops, which take 90 days for maturity, have already germinated in some areas that went for the early sowing, he said.

According to trade estimates, country's guar production was 7.2-7.7 lakh tonnes last year, with Rajasthan emerging as the largest producer with an estimated 3.5-4 lakh tonnes output followed by Haryana with three lakh tonnes.

Gujarat and Punjab contributed an estimated 50,000 tonnes and 20,000 tonnes, respectively.

Meanwhile, the current prices of guar seeds in Haryana is at Rs 1,600 per quintal while in Rajasthan it is being priced at Rs 1,640 per quintal, traders said.

"The difference in rate is because of 4 per cent VAT levied in Haryana as against none in Rajasthan," a wholesale trader at Hisar said.

According to the spot prices maintained by the NCDEX, guar seeds prices at Jodhpur rose to the rate which prevailed one month back after falling below Rs 1,600 level.

NCDEX spot prices showed guar seeds prices now ruling at Rs 1,698 per quintal against Rs 1,695 a quintal on June 18. However, it came down to Rs 1,589 per quintal on June 29.