PRICE AND TRADE OF GUAR

Price Movement of Guar
Guar bean has shelf life of more than 3 years without losing out on any of its properties or qualities. It requires the minimum maintenance and handling environment. Therefore, traders
 derivatives very much depend on the monsoon condition and its likely production.  or stockist store guar for as long as 6-7 years. However, prices of Guar bean as well as its

Factors Influencing Guar Price 1. Rainfall during sowing and critical     stages of growth 2. Area sown under the crop in Major  states like rajasthan, Haryana,  Punjab, Gujarat, etc. 3. Pattern of arrivals on a regular basis in markets like Jodhpur, Bikaner, Sriganganagar, Adampur, Bhiwani,   Siwani, etc. 4. Demand from millers or rocessors  and export demand 5. Carryover stock.

The prices are observed to be highly volatile during monsoon months due to market speculation. There is a good correlation between rainfall and production in Rajasthan as the Guar crop is rain-fed. The effect of rainfall on production is seen less in case of Haryana where Guar is an irrigated crop. The other factors like pattern of arrival, demand from millers and 
export also cause volatile price movement. 

Fluctuation in Spot prices 

The spot price of Guar seed for the last 7 years i.e., from 2007 to 2013 reflects high volatility of prices. The Spot price at Jaipur market and Sri Ganganagar are analyzed. The price fluctuates highly during monsoon period i.e. July to October. Guar seed traded at  Kishangarh Renwal market between INR 4000/qt. during Oct, 2012 to INR 15000/qt. in the month of December, 2012. In 2013 the highest price at Jaipur was recorded in the month of January at INR 14400/qt. and lowest recorded was INR 4200/qt. in August. Highest fluctuation in prices of Guar bean has been observed inthe year 2012. During the year 2012, prices at Sri Ganganagar market ranged from INR 7752/qt. to INR 28556.2/qt. Annual volatility (measured as Coefficient of Variation) in Mandi prices of Guar seed at different markets has been worked out and

Table Volatility in Guar bean Prices (C.V. in %)

year	RAJASTHAN                                                    HARYANA
	Ganganagar		Jaipur		Hanumangarh	Adampur		Fatehabad	Hissar
2007	5.5	6.0		5.9		6.0	6.7		6.9
2008	7.2	8.5		7.8		8.0	7.1		9.6
2009	20.9	19.3		22.0		21.1	21.5		20.2
2010	7.8	8.4		8.0		6.7	8.3		14.7
2011	29.4	50.6		36.1		28.1	29.5		25.4
2012	46.1	38.5		33.8		47.7	56.3		56.7
2013	29.2	39.5		28.3		24.5	23.5		56.6

 Source: Agmarknet 

Results of the analysis reflect that there was high volatility in prices of Guar bean at 

Hissar (56.7% and 56.6% in 2012 and 2013, respectively), Fatehabad (56.3% in 

2012), Jaipur (50.6% in 2011), Adampur (47.7% in 2012), Sri Ganganagar (46.1% in 

2012) and Hanumangarh (36.1% in 20011) markets, as indicated by the higher 

magnitude of CV in the respective markets. 

The price of Guar seed ranged from INR 4000/- per quintal to INR 11000/- quintal at 

Jaipur market in 2013. While for the same period the price range at Sri Ganganagar 

was from INR 7752/- per quintal to INR 28556/- per quintal. In the year 2013 the 

ranges of price at Jaipur and Sri Ganganagar market were INR 4361/- per quintal to 

INR 11482/- per quintal and INR 5004/- per quintal to INR 11743/- per quintal 

respectively. 

The high price fluctuation in Guar is mainly on account of higher fluctuation in area 

and production of Guar seed depending on the spread and level of monsoon rainfall in the Producing centers and the export demand of Guar gum from the importing 

countries. 

Guar Gum Food Additive Spotlight

Guar gum, also called guaran, is a natural polysaccharide, and it is extracted from the seed of the leguminous shrub Cyamopsis tetragonoloba, where it acts as a food and water store. Guar gum is found in mostly in Pakistan and India, but smaller crops are also grown in the United States, Australia, and Africa. Guar gum is primarily used as a thickening agent, stabilizer and emulsifier or binder.

Guar gum is used in the food industry as a thickener and binder of free water. Much like xanthan gum, guar gum is only needed in small quantities to produce sufficient viscosity, making it a popular choice for a wide variety of foods.

FOODS IT IS USED IN

India is native of guar or cluster bean where it is used as a vegetable. From hundreds of years Guar has been used as vegetable in India. It is also used as a cattle food, and as a green manure crop in agriculture. Guar gum comes from the endosperm of the seed of the legume plant Cyamopsis tetragonoloba; an annual plant, grown in dry regions of India as a food crop for animals. There are various grades of Guar gums pure or derivative. Guar gum is a white to creamy coloured, free flowing powder and free from extraneous matter. Its ability to suspend solids, bind water by hydrogen bonding, control the viscosity of aqueous solutions, form strong tough films have accounted for its rapid growth and use in various industries. For example guar gum is used in paper, textile, oil drilling, mining, explosives, ore flotation and other various industrial applications.

Guar gum is used in sauces, salad dressings, ice creams, instant noodles, processed meats, bread improvers/baked goods, and beverages, to name a few. In baked goods, guar gum increases dough yield, gives greater resiliency, and improves texture and shelf life. In dairy products guar gum thickens products such as milk and yogurt, and it helps maintain homogeneity and texture of ice creams, and also sherbets. In processed meats, it functions as a binder and lubricant and it improves the appearance and stability of barbecue sauces, ketchups, dressings, and relishes.

HEALTH AND LONGEVITY CONCERNS

Guar gum is Generally Recognized as Safe (GRAS) according to the U.S. Food & Drug Administration; however, several studies indicate that guar gum may reduce the absorbability of some dietary minerals, including calcium. Other studies suggest that guar gum may lower cholesterol, aid in weight-loss, and help control diabetes. Because guar gum is a water-soluble fiber that acts as a bulk forming laxative, it is believed that it promotes regular bowel movements and relieves constipation or other symptoms associated with colitis, Crohn’s Disease, diverticulosis, and irritable bowel syndrome (IBS), to name a few.

While there are no known side effects in the concentrations used, unusually high concentrations may cause excessive bloating and flatulence due to fermentation by the intestinal microflora -- much in the same way as all indigestible polysaccharides.

OTHER USES

Guar gum may be used for cosmetics and toiletries such as conditioner, shampoos, and toothpaste. It is also used in the explosives industry, the paper industry, the pharmaceutical industry, and the textile industry. Guar gum is also used in the oil industry as a natural thickener. Xanthan gum can be added to water to increase its viscosity, or thickness. It is also used in mining and in pet foods.