guar gum prices rise as importers return to cover

[hanuraoc]

Indian guar gum prices rise as importers return to cover

Friday December 21 2012

INDIAN guar gum prices have edged back up in recent weeks on renewed demand from the oil drilling sector and farmers withholding stocks of the raw material, guar seed.

In the week ending December 14, European traders quoted Indian 200 mesh guar gum powder of 5,000 cps at spot and shipment prices of $7,855 a tonne compared with $5,950 a tonne a week earlier. The shipment indication was on the basis of fob Kandla. Similar increases were given for all main grades.

 

[executivedirectoraci]

There is no any positive sign of deadlock from farmers. Under the influence the farmers are not selling the commodity. The price was expected to grow in natural way. But the deadlock condition can harm the farmers in the long term.

The deadlock of farmer is moving toward the political movement. The politics and economics are two different things. In this condition the no investor would like to pure the fund in the industry. If the gold is being sold slowly at gold price that is OK, but if the Iron is not being sold at gold price that is questionable.

I always put the guar crop profitable for farmers still it is profitable for farmers, But the situation which is has been created on this point that is questionable.

Farmer has right to sell its commodity at a particular price. But if the farmers are not selling the commodity at a particular price that is questionable and point of investigation.

Business doesn't mean the cutting the supply line. It is all about to balance the demand and supply. What ever height is there to balance the demand and supply is understandable.

Buyer is not a foolish, he is studying each and every activity of supplier.

Ethics always matter in any type of venture for a sustainable long term growth.

Anyway still Guar is the profitable crop in context to cost of cultivation, time of maturity, low disease and insect attack, good for storage , land improvement, fertility increase, low water requirement.