Monday, May 18, 2015

The report Guar 2015

The report “Guar Industry Outlook 2015 gives an overview of guar industry with respect to 2015 by giving future perspective with reference to past. The report can be an important information source for the stakeholders to make informed decision with respect to highly uncertain future of guar industry. 

The Guar Industry has evolved from being used for domestic and ruminant feed purpose to finding applications in industries. Owing to new technology, research and development the natural gum property of guar has varied applications from food, pharma industry to oil Industry to and is poised to grow.

 India is the major producer of Guar Seed followed by Pakistan and US. India's guar seed production is subjected to temporal fluctuations and it ranged between 2-18 lakh tons during 2005-06 to 2012-13. The area under cultivation of guar in India has not changed much from last 10 years even then the production has increased to a great extent due to increasing productivity. Rajasthan is a major producer of guar among Indian states. The State produces more than 70% of total guar seed produced in the country. Haryana is the second largest Guar producing state in India which contributes around 11% of total guar seed production. The productivity of guar in Haryana is much higher than the productivity in Rajasthan.

The processing of guar gives three products mainly viz. guar splits, churi and Korma. Guar split is used as a main products for different industrial uses while Churi and Korma are used as cattle feed. 

Nearly 75-80% of the Guar Gum or other derivatives of Guar seed are being produced in India and are exported mainly to USA and European countries. The value added derivatives of Guar seed are used by the various industries in India as well as abroad. Pakistan, Sudan and parts of USA are the other major Guar growing countries which produces nearly 20% of world guar seed production. 

India contributes for more than 80% of the world guar split supply. Total world supply of guar split is around 4-5 lakh tonnes in a normal year. It increased upto 8 lakh tonnes as has been recorded in the year 2003-04. The consumption of guar gum by Fast Hydrated Gum (FHG) industry was limited to around 30%. But at present the scenario has changed and the major consumer of guar gum is FHG industry.It is also seen that the demand from food industry has reduced to around 20% only from 50-55% prior to the year 2005. 

The market of guar has witnessed a shift which was quite unexpected for the participants in the industry. The mean price of guar from 2007 to 2011 was moving around Rs. 2000/qt. to Rs. 2100. But the high price fluctuations in the year 2012 the mean price of entire period (2007-2013) shifted to a new high at around Rs. 3600/qt. at Jaipur market. The similar price movement has been witnessed by almost all the markets to the same extent. Mean spot price of guar seed for the last two year was around Rs. 7600/qt. In 2013 the price is moving towards stability. 

Although AGMARK grades are defined, market is run by industry grade as defined by the traders. Due to the fact that the product has a very long storage life, most of the product purchased from the mandi by traders is released in a staggered way as per the demand for coming years. The price in the market (trader to miller) is influenced by the stock positions. Most of the traders store guar seed in their own storage structures instead of storing in accredited warehouses. Warehousing facilities for storage of guar seed is inadequate thus needs more storage structures to be built. The quality of the commodity is not maintained properly at the warehouses, and there should be strict regulations for the warehouses on quality issue. 

The market is constraint by lack of transparency and market information. In spite of the fact that guar has assumed importance of stratospheric level, there is no systematic collection and dissemination of market information to the participants. 

All India Coordinated Research Project on Arid Legumes including research in Guar as a mandate is the only research effort towards guar crop in the country. The progress in research and development have been made at CAZARI, Agriculture Research Station (ARS), Durgapura, and CCS Haryana Agricultural University. R&D efforts have focused to produce good quality seed of notified varieties of guar. The scientists are also developing extra early maturing variety. The R&D efforts coupled with training to the farmers for quality seed production is paving way for integrated lab to land transfer of technology. 

The future of guar industry is for specialized applications and derivatives. It is envisaged that the industry will move towards product differentiation to meet the specific and niche demand. For example- in food industry there is growing preference for bio-degradable, non-polluting and organic, products. This gives ample scope for leveraging investment, knowledge management, technology and partnerships for technology sharing and transfer.

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