Guarseed stabilises

COMMODITY SPIKES

Guarseed futures got a hit in the later part of the last week due to removal of 4 per cent Value-Added Tax on it in Rajasthan (the largest producer of guarseed in the country).

On Saturday, the prices recovered a bit and closed at Rs 1,895 a quintal on Ncdex. The prices, as an instant reaction to removal of VAT, had declined to Rs 1,879 a quintal on Friday from the earlier ruling price of 1,935.

However, traders and analysts said prices would not slip further as demand had began to come.

"Whatever fall had to be there, it happened. It wont go further down," said an analyst. On Saturday, the physical rate in the mandis of Rajasthan was around Rs 1,820 a quintal.

"Within a week we foresee spot rates to see a jump of Rs 100 a quintal and to stabilise at around Rs 1,900 a quintal," said a Bikaner-based trader.

The production in the country is estimated around 70-75 lakh bags (each of 100 kg). Till last of January, demand could not see any jump as expected (especially from the export market). But now market sources say that there is demand from export market as well as from the mills.