Guarseed, gum prices may rise as demand picks up

NEW DELHI: Futures prices of guarseed and guar gum are likely rise by 10% in the next one month on increased demand and lesser supply, traders have said. Traders and analysts see guarseed to touch Rs 2,000 per quintal while guar gum would surge to Rs 4,800 per quintal levels in the coming days.

“Arrivals are coming down whereas the demand from firms like Hindustan Gum and Chemicals and Lucid Group is only increasing. We expect prices to go up in the next one month,” said Bikaner-based trader Vedprakash. Karvy Comtrade analyst Chowda Reddy also said the rising demand from guar gum mills would push prices up in the next three to four weeks.

Currently, arrivals have stopped from Ajmer, Tekdi and Pachwadi regions and many traders are awaiting supplies from the Ganganagar and Bikaner belts of Rajasthan. There are adequate stocks in these regions, a Jodhpur-based trader said.

Prices of guarseed and guar gum have rose marginally in the last one week and are expected to climb further on fear of sluggish supplies and increased demand. However, prices slipped on Monday at the NCDEX counter. March delivery of guarseed was down by Rs 15 at Rs 1,800 per quintal and guar gum was also down by Rs 27 at Rs 4,360 per quintal at 1600 hours.

Spot prices of guarseed in the Jodhpur market was trading at Rs 1,722.55 per quintal while guar gum was trading at Rs 4,287.50 per quintal.

“Prices have dipped today. They will recover and see upward movement very soon,” added Mr Vedprakash. India accounts for 80% of the total guar produced in the world and 70% is cultivated in western Rajasthan. Apart from Rajasthan, it is grown in Haryana, Punjab, Uttar Pradesh and Madhya Pradesh.