Guarseed prices may touch new high on weak rains

The price of guarseed may touch the new high of Rs 2,400 a quintal if the monsoon fails in the the major producing centres including Rajasthan.

"Western Rajasthan is continuing with weak monsoon which is not supporting the sowing of guarseed. If the next 10 days do not show any signs of better rainfall, the prices may reach Rs 2,400 per quintal," said Sanjay Pariwal, a Jodhpur-based trader.

At present, the spot price of guarseed is quoted at Rs 1,963 a quintal, a gain of 7.21 per cent from prevailing price at Rs 1,831 in the beginning of the month.

The present rise in the prices is mainly attributed to the unfavourable weather conditions due to shoftfall of rains in the major producing centres including Rajasthan.

With weak monsoon in the western Rajasthan, prices of guarseed may see new highs by the first week of August. And if, industry sources say, the situation remains unchanged the price scenario is expected to worsen further. Guarseed which is a monsoon-dependent crop requires moderate but frequent rainfall for good production.

The spot prices of Guar seeds have seen a rising trend in National Commodity and Derivatives Exchange (NCDEX) since the beginning of this month.

The spot prices of the commodity was reported Rs 1,831 a quintal on July 1 which once raised to Rs 1,941a quintal during the day. The futures price of guarseed for August contract have also risen to Rs 2,036 per quintal during the day, which stood at Rs 1,857 per quintal on July 1.

"Though in Haryana and Ganganagar belt there has been some sowing, but even then ultimately it will depend on the weather conditions," added Pariwal.

Moreover, all the plants in Rajasthan are not operational during the period,he said. Rajasthan contributes 70 per cent of the total production in India.Sowing for the low rain-fed crop starts by May 15 for early harvesting in October, but the seasonal sowing lasts up to the last week of July depending on monsoons.

According to the market sources, the demand in outside countries is also picking up. "In the last 10 years, such a good demand was never experienced. Most of the exports are done to China," said the sources.

India produces about 50-55 lakh tonne of guarseed a year with Rajasthan, Gujarat, Haryana, Punjab and Madhya Pradesh being the major producing states.