The sowing season for guar is approaching — it commences with the monsoon in this region — and farmers in Rajasthan and Haryana (where the bulk of global supply comes from) are likely, lured by the high prices of last season, to bring more area under the crop. As for millers, they’re adding to their capacity.
Sources in the trade say there are close to 40 guar gum mills in Rajasthan and about 30 in Haryana (80 per cent of the sown area for guar in the country is in these two states; India produces four-fifths of the global supply of guar gum). “The investment in putting up a mill is two acres of land and Rs 1 crore for building and machinery. About 70 per cent of last year’s crop has been processed; there’s a bright prospect for millers,” said Satish Mittal, a miller from Adampur in Haryana.
The surge in prices had led the commodity derivatives market regulator to suspend fresh trade in guar products from March 28. However, traders believe seed acreage would still increase. Says Naresh Malik, a farmer in Hisar district of Haryana: "Last year, I had sown cotton on 10 acres of land and guar seed in five acres. This year, I am planning to sow guar seed on 10-11 acres."
Shashipal Punia, a farmer from Nohar tehsil in Hanumangarh district of Rajasthan, said they were expecting about Rs 35,000 a quintal but even if they get around Rs 10,000, it would still be profitable to diversify from groundnut or cotton. He said another advantage of guar is that it can be stored for up to five years, with minimal investment in infrastructure. Another plus is that a byproduct is used as cattlefeed. “Earlier, we used to feed our cattle on guar as the crop was not remunerative. The cost of growing guar is covered by the cattlefeed; the rest is the farmer’s net income,” said Jhiri Ram of Rajasthan.
Rajesh Kedia , director, Jai Bharat & Chemical Ltd , a guar products exporter, says sowing would certainly rise, owing to the high prices farmers got for the seed this year. From Rs 60 a kg last year (Rs 6,000 a quintal) it had risen to Rs 300 a kg (Rs 30,000 per qtl) this year. Agricultural officials in Rajasthan say guar sowing would rise 15 per cent, from last year’s 2.7 million hectares. Those in Haryana believe it should reach three million ha as against 2.15 m ha last year. The area under bajra and cotton would get diverted; officials say the demand for guar seed this year has doubled from last year. In all, say traders, sowing of seed should cross five million ha, compared to 3.5 m ha last year.
P K Hissaria, president, Indian Guar Gum Manufacturers Association, believes even irrigated areas (guar is extremely drought-resistant) would see farmers opting for sowing, which could commence as early as May. He said export demand in 2011-12 was 25-30 per cent higher than last year. Apart from guar seed’s use as cattle feed and manure, guar gum has various industrial applications, such as in the paper and textile industry, the manufacture of explosives and hydraulic fracturing of oil and gas formations.