Amid fluctuations, Guar likely to be range bound
Despite the visible shrinkage in the acreage of Guar, the prices are likely to remain range bound amid feeble fluctuations.
Traders feel that prices may come down after Diwali. According to agriculture department, the carry forward stock of last year���s bumper produce has offset the estimated drop in this year���s production. ���Last year there was a production of around 13 lakh tonnes of Guar when the acreage was 30 lakh ha.
The carry over stock should be in the range of 3-4 lakh tonnes. This year, the acreage has shrunk to 18 lakh ha as against the targeted 25 lakh ha due to poor monsoon. The production this year is likely to be in the range of 7-9 lakh tonnes,��� he said.
The insufficient rains during the sowing period were compensated by some heavy showers in the latter half of the monsoon. ���Initially, the damage to the crop was estimated to be in the range of 50-60%. But delayed rains reduced the extent of damage,��� the official added.
The drop in Guar Gum exports and fresh arrivals are further putting pressure on Guar prices. Jodhpur based Guar Gum Association president Purshottam Kumar Hisaria said that there is around 30% dip in the export figures due to global meltdown.
���India exports around 75-80% of its Guar gum annually. Global economic slowdown has led to a drastic fall in exports of Guar gum. Against the last year���s export of 2.25-lakh tonnes, only 1.60-lakh tonnes export has been reported this year. In short term, Guar prices are likely to remain range bound,��� says Jodhpur based Guar Gum Association president Purshottam Kumar Hisaria.
The arrivals have just started in the mandis. The actual picture on estimated output will get clear only in the last week of October when harvesting completes and farmers prepare for Rabi crop.