text: Steady demand, rain woes push up Guar prices - The Economic Times
  Business News›Markets›Commodities›Steady demand, rain woes push up Guar prices
  Steady demand, rain woes push up Guar prices
  Talking to ET, PK Hisaria, president, Indian Guar Gum Manufacturers Association, said: "Last year, the area under guar seed was 32 lakh hectares.
  Updated: Jul 17, 2014, 01.28 PM IST
  KOLKATA: Guar gum prices, which have shot up by 14% in last one month, may rise further in the coming months. The twin reasons for the prices rise are less monsoon during the sowing season, which may affect the crop this kharif, and a steady demand from the US and China.
  This year, sowing has taken place in the irrigated areas of Rajasthan, Haryana and Gujarat. Sowing has not taken place in the rain fed areas of these states. Definitely, the production will be affected even if it rains now."
  Sowing of guar seed generally takes place in the period of June 15-July 15. Last year, the country had produced 25 million tonne guar seed.
  Prices of a kg of guar gum, which was at Rs 140 per kg in mid-June, has shot up to Rs 160 per kg.
  The guar seed prices have also inched upwards to Rs 55-60 per kg from Rs 40-45 per kg a month ago.
  "Prices will further go up in the coming months as there is pressure on the production side," Hisaria added.
  Guar gum is used as a thickening agent and as an additive in a wide variety of food and dairy products such as yogurt, ice cream, soft cheese, bread, pasta, ham, sausages, prepared fish and pastries. It is also used as an animal feed. Petroleum exploration companies used it as a sealant in oil and gas well drilling. India is a leading exporter of guar gum and it commands about 80% of global production, followed by Pakistan. Guar gum is derived from guar seeds (cluster beans), a legume crop that grows in semi-arid regions of Rajasthan, Gujarat and Haryana. Production is higher by 39% higher at around 25 lakh tonne this year.
  Rajesh Kedia, director, Jai Bharat Gum & Chemicals: said "There is steady demand for guar gum from the US and China. Oil drilling is picking up in China, which is good news for the guar gum industry. We are expecting a 5-10% increase in exports this fiscal. Last fiscal, we had exported 4.7 lakh tonne guar gum. This year we are expecting to export five lakh tonne."
  Halliburton and Baker Hughes are the two major buyers of guar gum. The companies drill and complete oil and gas wells using a pressurepumping technique known as fracking, which blasts water mixed with sand and chemicals underground to free trapped hydrocarbons from shale formations. Guar is made into a thick gel and is used for carrying sand down to a well and into the cracks created from fracturing.