Revoke the ban on guar futures, say farmers, exporters

AHMEDABAD: Guar farmers and exporters are planning to hold a protest in Rajasthan, Punjab and Haryana demanding that the Forward Markets Commission (FMC) lift the ban on guar futures. In spot market, guar seed prices have fallen by 30% to Rs 8,000-Rs 8,400 a quintal in the past one month owing to poor export orders and a good production. However, a section of manufacturers and exporters feels the ban should remain to ensure stability in prices.

"We will be staging a huge protest march in Jodhpur against the government's inaction of re-listing guar and guar gum on the futures market. The protest will take place on December 23, which is the birth date of farmer's leader and sixth prime minister of India Chaudhary Charan Singh," said BD Agarwal, MD, Vikas WSP. The company clocked a net turnover of Rs 1,025 crore with a net profit of Rs 155 crore this year. It processes 70,000 tonne guar gum a year. The nation's commodity market regulator banned futures trading earlier this year as guar gum prices rallied to Rs 80,970 ($1,557) per quintal on March 27 in Mumbai from Rs 8,750 per quintal a year earlier. Currently, the FMC is holding talks with the commerce ministry. "Farmers are not getting a fair price," said Agarwal, pointing out that guar seed prices are Rs 9,700 a quintal in Ganganagar, compared to Rs 8,400 a quintal in Jodhpur market. India is the major exporter of guar gum to the world with major export destinations being the US, China, Germany, Russia and Australia. The country exported 7.07 lakh tonne of guar gum worth Rs 16,523.83 crore during the year 2011-12.