Rajasthan traders see rising trend in guar prices

With scanty arrivals reported from various commodity mandis (markets), traders in Rajasthan expect a rising trend in guar prices in the next few days.

As per trade estimates, the prices of one of the most speculative commodities is all set to see a jump of over Rs 700-900 per 100 kilogram in the next 15-30 days.

"Though fresh arrivals of guar have started in most mandis of Rajasthan, arrivals so far have been lower than what we estimated. It is only 10 per cent of our earlier estimations," Satish Jain, a guar trader said.

He said low arrivals of guar in most of the markets, suggested reduced production of the commodity due to which prices are expected to rise.

There are reports that a major chunk of guar crop in Rajasthan has been damaged due to late rainfall. "There are reports in majority of the guar producing areas that the seeds have gone black," Ravi Kant Kanungo, a guar trader said.

"Looking at the current situation, a production between 4 to 5.5 million bags of 100 kg each are expected in the desert state, against the earlier estimates of 5.75 to 6.5 million bags," he added.

He said that despite a carry-forward stock of 2.5 to 3 million bags, guar prices were expected to touch over Rs 2,500 per 100 kg after Diwali, against the prevailing price of Rs 1,770-1,800 per 100 kg.

Voicing similar views, Ram Kumar Sharma, a guar trader from Churu, said that the total production of guar was expected to be anywhere between 4 to 5 million bags this kharif season (June-October).

"Looking at this scenario, one should not be surprised if guar touches Rs 2,700 to 2,800 per 100 kg in the next 15-20 days," Sharma said.

Small arrivals of the new crop have already started in the markets of Sri Ganganagar and Nagore. The arrivals were to the tune of 500 bags. In Nagore and Merta markets, the arrivals were 100 bags each.

Rajasthan accounts for 70-74 per cent of the total output of guar in India and its production heavily depends on rainfall. Jodhpur, Nagaur, Merta, Degana and Balotra account for 60 per cent of the state's guar output.

Sekhawati, Bikaner and Churu are the other major guar producing regions of the state.

As per the agriculture department estimate, during the current kharif season, guar was sown on an area of 2.2 million hectare, 0.3 million hectare below the target of 2.5 million hectare.