Guarseed output may decline this year by 10-12 per cent due to a poor monsoon in major producing states like Haryana and Rajasthan.
According to traders’ estimates, early trend indicates that the total output for this season may stand at 7 million bags (one quintal each) as against 8 million bags during the previous season. Although, monsoon started in Rajasthan on Monday, it is too late for farmers in Sriganganagar and other neighbouring districts of Rajasthan and Haryana for guarseed sowing.
“Crops like chana and mustardseed accrued better remuneration for farmers during the previous season. Most importantly, guarseed prices have declined over 30 per cent since December which is enough to discourage farmers to shift to better yielding crops,” said Jodhpur-based Purshotam Mundra, a guarseed trader.
Guarseed prices declined five per cent last week following the revival of monsoon in major producing belts of Rajasthan and Haryana — the two largest guarseed-producing states in India.
The most active guarseed contract for delivery in August 2010 traded at Rs 2,269 a quintal on Monday — a decline of six per cent from the level of Rs 2,411 a quintal on the previous Monday. Similarly, guargum contract for delivery in August 2010 plunged to trade at Rs 4,986 a quintal, a decline of 6.16 per cent from Rs 5,313 a quintal.
In the spot market also, the seed was traded at Rs 2,325 a quintal in Jodhpur, one of the largest guarseed spot trading market yards in India. Guargum, a processed form of guarseed which is for its medicinal values, closed in Jodhpur market at Rs 5,000 a quintal, a decline of over six-seven per cent in the last one week.
According to Mundra, sowing takes place mainly in Haryana and Sriganganagar which fetch about 50 per cent of the total output, between June 15 and July 15 period. But, hardly 25-30 per cent of the dedicated area has been covered under guarseed this year due to poor seasonal rainfall.
If the remaining area is covered during late rainfall, the field will not be ready for kharif pulses or oilseed crop. Apparently, late sowing in the region may accrue lower yield in guarseed as well.
Usually, farmers in Rajasthan and Haryana sow chana (chick pea) and mustardseed after harvesting guarseed. But, the lack of rainfall dashed their hopes this year, Mundra said.
Reports suggest that major guargum manufacturers and suppliers, including Hindustan Gum, Lucid India and Vikas WSP, are looking for an opportunity to resume buying from the open market.
“Pipeline inventory has cleared with less arrival in the market and higher export demand. Therefore, prices may see a turnaround in the near future during the current lean season,” said Bikaner-based guarseed trader Navaratan Daga.
Guarseed is a rainfed crop which requires intermittent rain water for bumper yield. Only a marginal sowing area under guarseed is covered through mechanical irrigation system while the rest depends on rainwater.
Farmers are still positive in western Rajasthan where guarseed sowing takes place only after July 10. Since the early crop has been badly affected, the overall output may remain below last years’ level.
Sanjay Periwal, another trader based in Jodhpur, said the emergence of export demand may pull prices up this week.
