Isabgol shortage to raise prices

Producers and exporters of psyllium (isabgol) seeds, powder and husk are facing a shortage of around 3 to 4 lakh bags (75 kg each) this year. This follows an untimely spell of rains in March, which caused extensive damage to the crop, and negligible carry-forward stock in the market.

Gujarat is one of the major growers, manufacturers and exporters of isabgol seeds, powder and husk in the world, followed by Rajasthan.

Industry experts expect the prices of export quality isabgol seeds, which has dipped to Rs 900 to Rs 1,000 per 20 kg from Rs 1,100 to Rs 1,300, to shoot up again in the near future following supply worries.

The prices of isabgol had taken a dive after a bumper crop of 18 lakh bags (13,50,000 tonnes) was projected this year. However, the actual output now stands at the normal 10 lakh bags plus the last year's carry-forward stock of 1.5 lakh bags, for a total of 11.5 lakh bags.

"The output of isabgol stands normal this year with little carry-forward stock in the market. However, the industry's requirement for isabgol has increased with higher demand from the importing countries. While the total output this year is 10 lakh bags (75 kg each) along with 1.5 lakh as carry-forward stock, the industry's requirement stands at 14 lakh bags," said Bharat A Patel, general secretary, Isabgol Processors' Association, and MD of Sidhpur-based Shiv Psyllium Industries. There are around 15 isabgol processing and exporting units spread across Sidhpur, Unjha and Palanpur in the northern region of the state.

Explaining the dip in the projected bumper crop, he said, "The crop output was supposed to be higher this year but the untimely rains in March damaged the crop."

Traders are, meanwhile, expecting the surge in demand to take the prices up. Bharat K Patel, MD, Atlas Industries, Sidhpur,said, "The prices of normal quality isabgol seeds are between Rs 700 to Rs 750 per 20 kg, while the export quality seeds are between Rs 900 to Rs 1,000 per 20 kg. At present, the prices are stable. But the increased demand and short supply may have a positive impact on prices."

Speaking on export trends, he said, "Of the total production, about 3 lakh bags are consumed by the domestic market. The rest of the output is exported. Major importers include the US (consumes 50 per cent of the total exports), Canada, Mexico, Australia, European markets like the UK and France, and Japan, Indonesia, South Korea and China from South East Asia. Procter & Gamble is the largest buyer of isabgol from Gujarat, along with other buyers like Dr Morepan, Dabur, Lupin and Glaxo."