Guar acreage set to go up on good rains
Good rains in Rajasthan have raised the hopes of a better guar crop this season after last year’s dismal output due to a weak monsoon.
However, the August contract for guar seed saw an upside of 0.9% on NCDEX to touch Rs 2,143 per quintal on Thursday while the guar gum November contract went down by 1.9% to settle at Rs 4,914 per quintal. “The region has received good rains this year. Farmers are excited. Sowing has been extended for the next 20 days. But if it rains heavily during this time, it may damage the crop,” cautions Ashok Burad, a leading guar gum manufacturer.
According to the agriculture department, the estimated guar acreage is likely to go up by 20%. “The state government had set a target of 26.90 lakh ha this year. But the sowing may cross 30 lakh ha if sentiments remain firm. The production too, then, is likely to be in excess of 12 lakh tonnes putting pressure on prices,” says Panna Lal, chief statistics officer.