Market my stay weak on rains in Rajasthan

Guar prices are likely to weaken in the short-term as recent rains in Rajasthan are seen boosting crop prospects, traders said. For the long-term, however, the price outlook remains firm.

Rajasthan is the largest producer of guar seed in India, contributing 70-74 per cent of the country's output.

Guar is a rain-fed monsoon crop, which requires 8-15 inch rain in three-four spells. It is sown immediately after the first showers in July and harvested around November.

The main areas of production are Jodhpur, Nagaur, Merta, Degana and Balotra contributing 60 per cent of the state's produce. Sekhawati, Bikaner and Churu are other major guar producing regions in the state.

Traders said projected higher production""almost 10 per cent more than last year's output of about 700,000 tonnes""would lead to a decline in prices by about 5-10 per cent soon after new crop arrivals start around November.