Isabgol prices may dip on high production

The recent climatic changes may impact the prices of psyllium (isabgol), with a higher output expected this season. Unjha, Sidhpur and Palanpur in north Gujarat, a hub for psyllium cultivation, trading and processing, are yet witness brisk trade.

The isabgol output is around 10 to 12 lakh bags, each of 75 kg, every season, registering a production of 90,000 mt. Last year, a deficit of 30 per cent over the previous year's production led to an output of hardly 7-8 lakh bags (60,000 mt) as a result of crop damage owing to bad weather. Isabgol prices had shot up to Rs 1,100-1,300 per 20 kg. The higher prices had led to speculations of a larger output of around 18 lakh bags (1,35,000 mt).

"However, this is not happening now and that is the sole reason we fear the last year's climatic changes had fuelled the commodity's prices. This year, a bad weather is set to impact the prices again," claimed Dharmesh Patel of Vikas Industries from Siddhpur.

There were initial reports that the climatic changes in the last month had damaged 40 per cent of the crop. But, in the final assessment, the crop damage was fixed at 25 per cent.

Experts estimate the isabgol production to touch around 11,25,000-13,50,000 mt, a rise in output by 84,375-1,01,250 mt. A higher output would thus hit prices of isabgol, they said.

Of the total production, about 20 per cent is consumed domestically, with the balance exported to the USA, Canada, France, the UK, Japan, Mexico, Indonesia, Korea, Australia and China. A majority of the indenting is done for pharmaceutical applications, with domestic buyers such as Dabur, Dr Morepan, Glaxo, Lupin, outsourcing their requirements from north Gujarat.

There are at least 12-15 such psyllium processing and exporting units spread across Sidhpur, Unjha and Palanpur.