Guargum exports may surge 47%

Guargum exports from Rajasthan, Haryana and Gujarat, the three major producing states, are likely to rise by 47 per cent this year following an increased demand from China and the US. The country, which usually exports around 1.5 lakh tonnes each year, is set to export 2.2 lakh tonnes this year.

An appreciating rupee has eaten into the margins of exporters. However, the rise in volume of exports is likely to nullify the impact of the strong currency.

"The major export markets for the Indian guargum powder and split are China and the US. For the last two years, we have witnessed an increase of around 50,000 tonnes in demand from these two countries. This year the total guargum exports are likely to touch 2.20 lakh tonnes. The major demand boosters are the growing food industries of China and the US and increased demand from the Chinese textiles, paper and fuel industries," said Mahesh Soni, a partner at Vasundhara Industries in Beawar, Rajasthan.

"Last year India's total exports of guargum to the US and China were 1,87,000 tonnes, which are bound to exceed the 2 lakh tonnes mark this year. Guargum has multiple uses and is employed in the food industry as it has a high-fibre content, textiles industry for pigmentation, paper industry for fibres, while it is also used in explosives and fuels," said Mahendra Bhanushali, president of the Gujarat Guargum Manufacturers' Association.

Around 90 per cent of the country's total guargum output is exported to China and the US. The Chinese demand is for guargum split as it has infrastructure similar to that of India. They process the split into powder and refine it before using it in industries. Of our total annual exports, 60 per cent goes to China and the remaining 40 per cent goes to the US market," said Rakeshkumar Gulecha, owner of Jodhpur based RK Industries.

However, the rupee appreciation has cast a shadow on the margins of exporters. Yet, they are upbeat, arguing that the impact will be nullified because of the higher demand and increasing export volumes.

"The recent rupee appreciation has certainly affected the margins of guargum exporters. But the pinch is not felt so hard as our export volumes are also growing simultaneously, with the output also rising in the country," said K S Talwar, director, Jai Bharat Gum and Chemicals, Haryana.

The export prices of guargum split are likely to remain around $1,000 a tonne and powder guargum prices may remain around $1,200 a tonne.