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Guar crop not ‘promising’, acreage likely to decrease

Guar crop not ‘promising’, acreage likely to decrease

Tue May 21 2019

 

Acreage of guar may drop by 15-20 per cent in this year’s kharif crop as farmers may not be too keen to sow the crop as it has not yielded remunerative prices in the past year. Prices of guar seed and guar gum have remained flat with hardly 1-2 per cent movement.

 

Industry executives said that guar farmers may shift to cotton and pulses as they are getting much better prices for these two crops.

 

Rising crude price is also not helping the country’s guar gum industry to increase exports as North America’s oil rig companies aren’t ready to buy good volumes of guar gum for hydraulic fracturing, a technique used to extract oil and natural gas trapped in shale rocks.

guar-graph

 

“The North American oil drilling industry is now using cheaper fracturing material such as slick water instead of guar gum. That is why the demand for guar gum isn’t picking up,” said Rajesh Kedia, director, Chimique India.

 

Crude oil price on Monday rose after Saudi Arabia and other Opec members signalled their intention to constrain their supplies, while US President Donald Trump ratcheted up tensions with Iran. Futures in New York jumped as much as 1.7 per cent, before paring some of those gains. Kedia said that cotton has given good returns to farmers which is why there’s a possibility that farmers might shift to the crop from guar. “Similarly, the minimum support price of pulses will also attract farmers,” he said.

 

The total area under guar crop is 35 lakh hectares. The total production of guar seeds is around 8-8.5 lakh tonnes in India. “Since the farmers have not got remunerative prices for guar seed as well as guar gum, the acreage may come down by 15-20 per cent this kharif,” analysts said. Price of guar seed has been hovering around Rs 40-42 per kg and guar gum between Rs 88 and Rs 91 per kg in the past one year.

 

Source: https://economictimes.indiatimes.com/

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