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guargum

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Crises in Ukraine can lead to the boom in fracking industry.

If there is no diplomatic solution of Ukraine crises, it can lead to the boom hydraulic fracturing. Might be there is the own reason of Ukraine and Russia for this crises but USA will be gainer from this crises and EU will looser

The US and EU can lead to the financial sanction against Russia to create pressure, but the reality is that in the current situation Europe need Russian natural gas. The pipelines passes through the Ukraine. If the tension continue then Russia can use Natural Gas as Weapon.

The economic sanction will not lead to early effect in Russian economy as Russia itself is a 4 trillion economy, but Europe can coll down immediately without the Russian Gas.

But one thing is clear if there no friendly relation Between EU and Russia, then EU can go for then hydraulic fracturing. If the environmental rule of EU don't permit to do so then the USA can enjoy this situation and hydraulic fracturing activity will increase in USA. USA is already leader in hydraulic fracturing.

In the current condition USA is profitable in both condition, If USA get success then it will strengthen its step in UKRAINE. If things are again US then it will be the leading supplier of Natural GAS to EU.

The same time if EU freeze the Russian asset then Russian will also put same impose on EU assets in Russia. There is chances that these sanction can back fire.

In strategic point of View Russia will gain from this conflict, but if the strong long term conflicts arise between EU and Russia, then EU will be the looser. In short term EU will face the GAS crises, and US will enjoy this situation.

Might be the Guar farmer of Rajasthan can enjoy this situation, but after looking all the condition i don't find any gain for Rajasthan Guar Farmers in coming future. Because the total use of Natural gas will same in all condition, SO the overall demand of hydraulic fracturing process will be same. The hydraulic fracturing can shift from one region to another region in the over all scenario. Another fact is that in the next 7 month there will low requirement of energy.

Ultimately the key is in the hand of BRICS economy. Strategically Russian and friendly relation with Indian and China. There is old saying in India. The exact looser in battle is "battle ground", where distraction take places. This time it is UKRAINE.
 

guargum

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Guar Gum Export from India is increasing

The volume of guar gum export is increasing after prices were stabilized during this year. Guar gum and buffalo meat has emerged leading exportable agriculture produce from India. Rates are going up slowly during this months . There is improvement of INR 1000-1500 in guar gum rates in local market. There are two main reason.

First reason :-Demand and supply equation is stabilizing slowly and slowly.

Second reason :- There is improvement in Rupees rate in comparison to USD. Though there are no any major chances of further improvement in guar gum rates but the equation of demand and supply and USD / INR rate will effect guar gum price. We can say that currently guar is out speculators . There is volatility but not too much.

Hoping that summer crop will be sown in some parts of India in April and that production will come in market in June. In June Mansoon/ Kharif crop of Guar will sown in major guar growing belt. Climatic condition of June- July will decide further change in rates of Guar. Currently there is enough stock of guar seed in market there is no need to be panic about supply.
 

guargum

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Guar Gum Cultivation in Summer crop

This is best time for the summer crop who want to cultivate guar crop. The climatic condition are suitable for guar cultivation . It is noticed that summer crop gives good production as comparison to the rainy crop/ monsoon crop. Guar is a 90-100 days crop so one can expect the harvest of this summer crop in may- june. The only constraint with this crop is water, if there is sufficient amount of water then one can go for guar cultivation. Guar doesn't require too much water but it will require two- three irrigation in peak summer period. There attack of disease and pest are less in summer period. Growers can get good rates in May-June in comparison to October - November. During period of May-June there is congested supply in market.
 

guargum

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Guar Gum Emerged as major water treatment chemical.

Guar Gum powder has emerged as major water treatment chemical. The water pollution is increasing day day by day. The treatment of urban waste water has emerged major problem for the urban localities. Many govt has made the provision to treat the water before discharge it into the water bodies.

The fresh water sources are declining day by day. Polluted water create a lot of problems and disease when it is consumed. Guar gum is safe and natural ingredient which is environment friendly. regulatory bodies are putting pressure. Teh demand of guar gum will be boost throughout the world for water treatment application.
 

guargum

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Guar Gum Seed Cultivation Consultancy

We provide consultancy for the guar (guar gum) cultivation. Guar is a major crop of north western India; India produce maximum guar of the world, Pakistan stands second for the same. The guar seed is final farm produce of the guar crop. It is further processed in the Guar gum, which is used as gum powder in many industries like Oil extraction industry, food processing industry, food preservation industry, printing industry, textile industry, paper industry and other industries. The by-product of the guar gum industry is used in cattle feed industry.

Though the Guar is a cash crop, if we consider the other importance of the crop, Guar can be called as complete agriculture crop. It is low investment crop, the cost of cultivation of the crop is very low, so the risk is also low, it is used as vegetable in green pod form, which is highly nutritive. It is used as green manure as a nutrient supplement for the other crops. The guar crop plant parts are used as fodder that is good for the digestive system. The guar seed are used as cattle feed for the milking cattle.

Our expert will assist you in selection of the cropping time, land preparation, seed supply, weeds management, insect and pest management, water management, threshing, storage, trading and marketing and the processing of the guar seed into the guar Gum.

We are leading Agro Technology and Agribusiness consultancy provider. We strongly believe in business ethics. We have highly professional team of subject matter specialist of agriculture and allied disciplines. We believe in truly consultancy with independent and profitable solutions. For us agriculture is the base of development, height of development, strength of development, depth of development. For a long term sustainable social & economical development agriculture must be the axel. Agriculture development must environment friendly, sustainable, efficient use of available resources and non hazardous.

We provide Agro technology and Agribusiness consultancy through better utilization of your resources, value of your money, independent consultancy, cost effective, profitable solutions and complete satisfaction without any deviation.
 

guargum

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Guar gum exports in 2013-14 stood at Rs 11,734 crore with 48 % increase by volume

India Govt's organization has released the data of export of agricultural commodities from India. growth rate has been slow down from 24 .10% of last year t to 15.70 % of this year. Guar gum powder export has emerged as major reason for slow down of the agriculture export rate.

In 2013-14, India exported agriculture farm goods worth Rs 2,68,477 crore as against Rs 2,32,041 crore in 2012-13. In 2011-12, India had exported farm products worth Rs 1,86,970 crore.

The major reason behind decrease in guar gum export was the rate of guar gum . The rate of guar gum was remained steady throughout the year 2013-14. The average rate of guar gum seeds was INR 5000/ 100 Kg.

It is noticed that the there is sharp increase in volume in comparison to last year. There volume wise it has increased 48 % last year there was decrease of 42.5 % . overall we can say by volume wise the export of guar gum has increase.

This year it is expected that teh volume will increase as the carry forward of stock in international destination has come down. If the monsoon will normal or at a deviation up to 20 % then there will no any significant change in rate. The existing carry forward of farmers stock will come out for sell in this year.

Guar gum Export data of previous year

Year 2010-11 - Value INR 2,93,869.89 Lacs or 2,938 Crore Volume 4,41,607 MT
Year 2011-12 - Value INR 16,52,386.70 Lacs or 16,523 Crore Volume 7,07,326 MT
Year 2012-13 - Value INR 21,28,701.07 Lacs or 21,287 Crore Volume 4,06,311 MT
Year 2013-14 - Value INR 11,73,452.54 Lacs or 11,734 Crore Volume 6,01,945 MT
 

guargum

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Can poor monsoon lead to increase in Guar prices ?

Can poor monsoon lead to increase in Guar prices ?

The monsoon has already delayed in guar growing belt. Most of guar is grown in rain-fed conditions. Guar cultivation area will shrink this year. Most of first sowing has been destroyed due to drought in rain fed guar growing belt. As per weather report there are chances that there can be drought this year. It is clear that guar production will decline this year. There can be gap between demand and supply.

This gap will work as vacuum in the market, which can further lead to increase in guar seed rates. There are chances that rate of guar can be increase up to 10,000 /100 kg. in normal condition we can expect 7000-8000/ 100 kg.


It is expected that within three days, monsoon wills started to cover western part of India, which is major guar growing belt. Currently there are two crops one crop which has been sown in the month of June, this crop has affected widely just because of delayed monsoon. Another crop, which will be sown in this monsoon.

In irrigated area, crop is standing in good condition and monsoon will lead to good harvest. Problem is rain fed area, sowing has been delayed due to late monsoon or first crop has been been destroyed. This condition can lead to the another sowing .

As per price is concerned the rate will be remain in between the bracket of 4000 to 8000. Only an abnormal vacuum can lead to abnormal price rise. There are low chances in speculation and unfair stocking activity, Central govt is regularly monitoring the stocking activities.

Trend of commodity market is also under direct lenses of govt regulators. There is not any major chances of unexpected price rise. Price will settle down with in 10-15 days. There is possibilities that from next month rate will come on regular track.
 

guargum

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Improvement in Manson and Guar Seed & Guar Gum Prices in 2014-2015

Improvement in Manson and Guar Seed & Guar Gum Prices in 2014-2015

Last month it was seen decline in price of guar seed and guar gum. Condition will be remain under pressure up to next six months. The use of guar gum and its derivatives will come down in next six months.


The improvement in the mansoon is major factor to keep the prices under control up to next 6-8 months. Fear of poor monsoon has gone away from the mood of farmer, trader and the processor. The improved Monsoon will support farmer as it will keep his farm expenses lower. The arrival of other commodities will also increase the business of trader and processor, The profit from other commodities will keep liquidity in the market and there will be money in the hand of farmer, So there will be no major pressure of liquidity on single Guar seed commodity o. In this improved monsoon condition it is expected that prices of Guar seed will be remain under pressure. Guar seed prices can come in the bracket of 3500-4500 in year 2014 - 2015.
 

guargum

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Low Fracking activities in Winter Period and Guar Seed & Guar Gum Prices in 2014-2015

Low Fracking activities in Winter Period

Winter time will start after two months. In the winter month the new fracking activities will come down. because oil and gas company will start to work on production of Gas as the energy requirement will be increased in most of developed countries. Halt is fracking activity will not lead to any major new contract or demand of guar gum . Existing contract of guar will keep going. Mostly frackign activity is completed during the summer period. Low frackign activity will keep pressure during the remaining period of 2014-2015 up to march. In the next 6-8 months the demand of guar guar seed and guar gum will come down.
 

guargum

Established Member
Expectation of normal guar seed crop production in 2014-2015 and Guar Seed & Guar Gum

Expectation of normal guar seed crop production in 2014-2015 and Guar Seed & Guar Gum

Expectation of Normal crop

Recovery in Monsoon will lead to a normal guar seed crop in year 2014-2015 as per current climatic condition. Rain fall is good in Guar growing belt. Early sown crop will be befit from it and will recover from drought condition. New crop will start to come in market after mid of October. Delay in monsoon has increased Guar sowing in irrigated area. Irrigated area work as a insurance of good production for Guar Crop. At other side late rainfall increased the late sowing in rainfed area of Chrur, Hanumangarh, Ganganagar, Bikaner, Jodhpur, Nagor and Jaisalmer.

Initial delay in monsoon weakened the guar seed crop production.but it improved significantly. Shadow of poor monsoon will effect the production of guar seed but it will not effect the business of guar seed and guar gum. If monsoon keeps going as it is right now , then it is expected that in this year 2014-2015 , there will be production of 18,00,000 MT (18 Millions Bags of 100 Kg. each) ) of Guar seed. Though this production is not sufficient to cover the expected total demand of year 2014-2015 but carry forward stock of last year will make it surplus amount to fall in the price of guar seed and guar gum in year remaining period of year 2014-2015 .
 

guargum

Established Member
Carry forward Stock of Guar seed for 2014-2015 and Guar Seed & Guar Gum Prices

Carry forward Stock of Guar seed for 2014-2015



The carry forward stock of guar seed is major aspect to decide guar seed and guar gum price. Farmers and traders are still having huge stock of guar seed. Last year price stability and decline was due to carry forward of huge guar stock of 2012.

As an rough calculation there is 5,00,000 MT guar seed stock of 2013 and 5,00,000 MT guar seed stock of 2012, 5,00,000 MT guar seed stock of 2011 and before that. So total tally of carry forward guar seed stock is around. 15,00,000 MT. The available stock of guar seed for year 2014-15 will be around 30,00,000 MT.

The estimated consumption of guar seed in (Year 2014-15) can be in between 22,00,000 MT - 25,00,000 MT. More or less 5,00,000 MT - to 8,00,000 MT buffer Guar seed stock will keep pressure on guar prices in year 2014 - 2015.

If price of guar seed go below the bracket of 3500-4000, then there is chances of increase in consumption. In that case price consumption can cross the limit of 25,00,000 MT guar gum seed in year 2014-2015. But it is only possible if price of guar seed go below INR 3500/ 100 Kg. Till this consumption there will be pressure of carry forward Guar Seed Stock.
 

guargum

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Availability of guar seed after Fresh harvest of Guar crop in 2014-15

Availability of guar seed after Fresh harvest of Guar crop in 2014-15 and Guar Seed & Guar Gum Prices in 2014-2015

After two- three months guar seed arrival will increase in market. October - November will be harvesting period and there will be peak arrival for next three -four months. This arrival will lead to over supply and guar price will further come down. Generally big farmers go for regular stocking of guar seed for wait and watch behavior, but small farmer will keep pressure of availability in market. The fresh arrival liquidity of guar seed will keep pressure in the period of October to February- 2015. Availability of fresh guar seed will saturate market. Guar seed and Guar gum prices will be under pressure for coming next 6-8 months of current financial year 2014-2015
 

guargum

Established Member
Low consumption of Icecrem cream and other summer food & beverage

Low consumption of Icecrem cream and other summer food and beverage :-

Consumption of ice cream and other frozen food will come down during next 6-8 months, so demand of guar gum powder will come down from domestic and international food industry during the remaining period of 2014-2015. The rate of guar gum will under pressure from the food industry.
 

guargum

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Civil war is in Middle east, in Syria, Libya Lebanan, and Iraq and Guar Gum 2014-2015

Civil war is in Middle east, in Syria, Libya Lebanan, and Iraq and Guar Seed & Guar Gum Prices in 2014-2015


The civil war condition will keep in position of uncertainty to investors.So there will be no major investment in Syria, Iraq and Libya. Civil war condition will also keep pressure on these groups to sell more and more crude oil to earn money. All other source of employment has been crashed. Oil will be only exchangeable commodity for these fighting groups. Low rate of crude oil in international market will prohibit new investment in oil and natural gas sector.Means there will be no requirement of guar gum powder for new exploration. Current political crises in these countries will keep pressure on Guar seed and Guar Gum prices.​




 

guargum

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Sanctions on Russia by western world and Guar Seed & Guar Gum Prices in 2014-2015

Sanctions on Russia by western world and Guar Seed & Guar Gum Prices in 2014-2015

Sanctions on Russia will also keep pressure on Russia to lower the prices of Natural Gas. Low natural gas prices will keep pressure on International Energy prices. This effect will further transmitted to guar gum and guar seed prices. It was expected that fracking activities was suppose to increase in Russia , but the technology is laying with American Companies and sanctions will keep them away from Russia. A huge quantity was suppose to be used in Russian oil field by american companies. Now there is no chances of further progress in this issue in coming next 12-18 months. Guar seed and guar gum prices will be under pressure due to these sanctions on Russia.
 

guargum

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Decrease in Crude oil price in International Market and Guar Seed & Guar Gum Prices

Decrease in Crude oil price in International Market and Guar Seed & Guar Gum Prices in 2014-2015


In the Global market crude oil price are at the lower level . On 4th august it was at six month low. This price will effect the global energy price and that push will further put pressure on guar gum prices. The price fall doesn't give any sign of new investment in the Oil and Natural Gas Industry. Half of current financial has been passed , for the remaining financial year this is last time for new guar gum demand.




Global crude oil prices during last one month in USD

( Source link 1 Month Crude Oil Prices and Crude Oil Price Charts - InvestmentMine )

Currently I am monitoring and analyzing that Guar rate are slowly going up. Investors are advised to keep away from market this type of abnormal behavior. as i have discussed earlier that there is no problem on supply side fro guar seed. There are chances that speculators have again active in the market otherwise I am not seeing any reason in increase in demand of guar gum and further price rise in this commodity, be cautious.


Global crude oil prices during last one month in USD

( Source link 6 Month Crude Oil Prices and Crude Oil Price Charts - InvestmentMine )

The global demand in oil and natural gas industry can lead toward increase in guar and guar gum prices. In another analysis it has found that oil and natural gas drilling / fracking companies has stoked guar gum for one year so that they can avoid themselves from unnecessary price fluctuation. There can be minor effect due to USD / INR exchange rate, but the current exchange rate change is not sufficient to effect it. The existing contract will keep going there is low chances of new contracts in market.



Global crude oil prices during last one year in USD

( Source link 1 Year Crude Oil Prices and Crude Oil Price Charts - InvestmentMine )

 

guargum

Established Member
Decrease in Natural Gas price in International Market and Guar Seed & Guar Gum Prices

Decrease in Natural Gas price in International Market and Guar Seed & Guar Gum Prices in 2014-2015


Large share of guar is used in the natural gas industry for Fracking purpose. if we analyse the rate of Natural Gas in international market we will find that current rate are at lower level. Price chart of Last month, last Six month, and Last year will clear the picture. as per the current international situation there is not chance in improvement . After the end of this month, rate of gas will not effect the price of guar gum as the new farcking activities will come on halt in winter, so there is low possibility of new investment and and new exploration work in natural Gas..





Natural Gas Price Chart of Last one Month.

( Source Link : 1 Month Natural Gas Prices and Natural Gas Price Charts - InvestmentMine )




Natural Gas Price Chart of Last Six Months

( Source Link 6 Month Natural Gas Prices and Natural Gas Price Charts - InvestmentMine )







Natural Gas Price Chart of Last one year

( Source Link : 1 Year Natural Gas Prices and Natural Gas Price Charts - InvestmentMine )


There is one peak in Fabruary - March-2014 , this peak was just because of the Ukraine- Russia crises. other wise there is smooth function in annual price graph. If the price would have gone in summer period then it could have effect guar gum prices. After one month natural gas prices will effect the guar gum prices, because there is no new exploration
 

guargum

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Guar Cultivation area has increased in Rajasthan due to initial low rainfall and drou

Guar Cultivation area has increased in Rajasthan due to initial low rainfall and drought conditions


As per data released by Govt of Rajasthan it has found that the guar cultivation area has increased in comparison to sowing of of last year till date. Initial statics show that this year total area under guar cultivation till 7th August, 2014, is 2.75 Million ( 27.5 Lac) Hectare. During last year it was only 2.32 Million ( 23.2 Lac ) Hactare. It is sharp increase of around 19 % .


It is also observed that same trend keeps going. In same trend it is expected that it will cross Total showing of last year which was 5 Million ( 50 Lac) Hectare. This year guar sowing area will be at record level.





This year we can expect a bumper production, because the late rainfall is sufficient for better crop. There can be some effect on early crops but after the rainfall crop is standing in good condition. Might be total production can be lesser than last year but this year production will be much higher than last 5 year Average.
 
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guargum

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Expecting record guar seed production from Rajasthan in year 2014 - 2015 .

Expecting record guar seed production from Rajasthan in year 2014 - 2015 .


Initially low rainfall and drought condition in this Kharif ( Rainy Season ) crop worked as a reagent in increase of Guar cultivation area. This is called GUARTEK EFFECT in economics.


What is GUARTEK EFFECT effect ??

---> In extreme and adverse condition, economic behavior of human activity leads to natural economic practices.


Its implication in " Increase of guar culitvation Area in Rajasthan in Kharif ( Rainy Season ) Crop.


Every one was in tension due to El-nino effect ( expectation of poor rainfall ). There were clear probability of complete drought year in guar growing belt of Rajasthan, Haryan, Punjab and Gujarat. Initial rainfall was under 80- 90 % deficient condition in this region. Farmer were waiting for good and regular rainfall to start sowing. This year Manson arrival and activation was very late. These condition leaded to increase in Guar cultivation area. In these condition farmer adopted guar as a drought resistant crop, which was a natural crop of this area since centuries. It is a true example of GUARTEK EFFECT.


There are following two major reason behind this Increase.


Reason 1 :- Replacement of high water requirement crop cultivation area by Guar crop cultivation area in irrigated area.

In irrigated area farmer were not sure if they will able to get the rgeular supply of the irrigation water during this cropping period from Canal or tube-well, because if it would have drought year then there would not have proper recharge of ground water and irrigation project dam. There were chances that high water requirement crop can die in between. Farmer was not suer about the economic return from high these crop. he wanted to keep his cost of cultivation under control. Guar was a best alternate for him, he adopted it.


Reason 2 :- Replacement of other crop cultivation area by Guar crop cultivation area in rain fed area.

In drought are the farmers don't have too much choices, generally farmer go for Bajara, Mung, Moth and Guar. In these crop guar is only cash crop. farmer were not sure about the good rainfall so was not sure about good production. The rate of Guar was stable during last two three year , which is double, triple, four time to other commodity price. Guar has industrial application so farmers were sure about demand of guar crop, that it will increase if there were any adverse condition. other rest three crop have alternate like Bajara is used as food crop, it can be replaced by any other food crop. rest two crop are pulse, which can be replaced by any other pulses. Guar don't have any alternate , so farmer shifted toward Guar. In the late activation of Manson farmer started sowing with Guar in rain fed area to keep himself at safer side. Guar is also as good source of green Vegetable for human and fodder for cattle . Rajasthan contribute around 70% - 80 % of total guar production of India. The safe type of activity is also adopted in the guar growing belt of Punjab, Haryana and Gujarat. We expect increase in total cultivation are throughout the India. small contribution can be from Maharashtra, Andhra, Telangana and M.P. Later rainfall is continue and good so we expect that guar crop will be good. If the climatic condition will be in favor , than there are chances that, in this year total production of guar can cross last year production. Last year it was a record production of 2,80,00,000 - 3,00,00,000 bags of Guar seed. This year it will cross the last year production specially in Rajasthan.

There is no doubt in Normal guar seed production. An expected bracket of normal crop is 18,00,000 MT - 24.00.000 MT Guar seed production..
 

guargum

Established Member
Guar ( Guar Gum ) cultivation in India and its basic information

Guar ( Guar Gum ) cultivation in India and its basic information



The Gavar / Guar / Guwar / Guvar bean or cluster bean (Cyamopsis tetragonoloba) is an annual legume. Guar beans have a large endosperm that contains galactomannan gum, a substance that forms a gel in water.


This is commonly known as guar gum and is used in dairy products like ice cream and as a stabilizer in cheese and cold-meat processing. Derivatives of guar gum are also used in industrial applications, such as the paper and textile industry, ore flotation, the manufacture of explosives and hydraulic fracturing (fracking) of oil and gas formations.


India is the largest producer of Guar Gum, meeting over 80% of the world’s demand. It's a supply chain riddled with a high degree of complexity and opaqueness and a market fraught with uncertainty which has left the Guar Gum industry in India fragmented, unorganized, and underdeveloped.


Yet India strives to meet much of the world’s demand for Guar Gum. The industry complexities notwithstanding, the country’s ability to meet this ever-surging demand is closely linked to the rural farmers’ random and indivdual decision to choose Guar over other competing crops such as cotton for cultivation.


Guar production is concentrated around three western states in India – Rajasthan, Haryana, and Gujarat


These states account for 97% of the total Guar seed produced in India, with Rajasthan alone accounting for 80% of that production. Rajasthan is also home to most of the over 120 Guar Gum processors in the country. Much of the Guar Gum production is exported via seaports along western India. Currently, there is a less-than-adequate infrastructure at these ports, with frequent congestion and long wait times which have resulted in shipment delays.
 

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