Guarseed defies outlook, prices slide by 2 per cent

Guarseed prices slumped by almost 2 per cent during the last fortnight. This comes after the government had lowered crop estimates for the year and traders were projecting a price increase owing to short supply.

With the price decline spot guarseed is being quoted in the range of Rs 1,740-Rs 1,750 per quintal in Jodhpur on Tuesday.

In the Bikaner market it is offered at Rs 1,680 per quintal, in Nokha in the range of Rs 1,580-Rs 1,590 per quintal, in Sriganganagar between Rs 1,550-Rs 1,615, while Shiwani saw prices at Rs 1,530 per quintal.

"Generally, guarseed price declines after Diwali, but this year we were expecting a price rise keeping in mind the supply constraints," a trader said.

He added that this was a temporary phenomenon which will be overcome soon. "Once the price starts recovering, it would go up to Rs 1,800 per quintal this year," he said.

Guarseed futures at the Ncdex surpassed previous advances following a slightly firm opening in early trading. However, increased selling pressure at higher levels pushed futures in to negative territory. November future traded in the range of Rs 1,682-Rs 1,728 per quintal.

Guargum futures at the Ncdex saw strong sentiments after a weak opening. However, futures slipped on increased selling at the higher levels.

The November future traded in the range of Rs 4,450-Rs 4,591 per quintal. Spot guargum was quoted lower at Rs 4,500 per quintal in Jodhpur in evening trade.

According to the Rajasthan agricultural ministry, guar production in the state is estimated to be around 4.25-4.75 lakh tonne this year, well below the government's target of 6 lakh tonne.

Traders, however, estimate a even lower crop output. But, present stocks are now being released slowly with an eye on fresh stocks which is expected to bring in future gains.