Guar acreage up by 53% in Rajasthan

KOLKATA: Rains in Rajasthan have favourably impacted the sowing process of guar. Latest reports from Rajasthan Agricultural Department shows that area under guar cultivation at 69100 hectares, up from 45200 hectares in the same period previous year.

Guar has been trading weak as the sowing improved in Rajasthan. Traders attribute this to the good pre-monsoon showers seen in Rajasthan lately. The rains have arrived in north-west India before time and this augurs well for the new crop sowing.

Analysts at Religare Retail Research say that monsoon progress reports remain critical for determining the short to medium term trend for the commodity. Satisfactory monsoon progress report towards the north-west India keep pressurising the market sentiments and low trading activities continued to be noted in the futures market. Any slowing down of the monsoon progress may affect the crop productivity.

Last year India has produced 18 lakh tonnes more guar compared to previous kharif. Therefore the stock level is expected to be on the higher side this year as stockists are reportedly waiting for the price to rise on expectations that some recovery in rates would be there in the near term.