Guar Report
Due to the declining production of guar, some experts believe that if the international demand for guar gum increases, the prices may reach around ₹7,000 after December. Currently, guar prices are at their lowest levels. The primary reason for the long-term decline in guar prices is the decrease in international demand. In 2012, there was a tremendous demand for guar gum, especially in the American oil drilling sector, which led to a significant increase in prices. Due to the sharp rise in guar prices in 2012 and the lack of guar production in the US, the American market started looking for cheaper alternatives. According to sources, some other cheaper alternatives to guar gum have been found. This is why the demand for guar gum has been continuously declining, and prices have not been able to recover from the long-term decline. Additionally, during the pandemic, there was a significant drop in Indian guar gum exports. Due to the reduced international demand, Indian farmers and traders suffered losses. The good news is that due to the low prices of guar and guar gum, a positive trend has been seen in exports in the past six months. If this trend continues, there is a possibility of price improvement in the coming days. The future of guar gum depends on international market demand and its use in the oil drilling sector. Post-pandemic export growth is a positive sign, but there is still a lack of stability. Farmers need to understand that international markets have a significant impact on guar prices. Primarily, if the US imports guar gum, it can lead to a rise in prices. It is not advisable to make quick predictions based on market rumors. Given the current situation, expectations of increased exports seem low. It is essential to keep an eye on the market and wait until December for any price changes. Given the continuous decline in guar imports, there is always a chance for the market to rise. After a long period of low prices, a sudden rise is often dangerous, but in the case of guar, the rise may take longer. Do not hold too much stock and avoid trading for now.