Is the Guar Farmer Expecting Too much for his produce?

[ayurgen]

The poor farmer is not responsible for present dead lock in guar market.
Very few farmers made a good money in the last peak market. But gum companies made humongous profit.

Gum manufacturers formed as the cartel, not the farmers and perked up the price to exorbitant level.
It is natural for any body get greedy after seeing the huge profit the middle men made; so is the guar farmer.

Let the market find the natural price for him. Rs50,000/1qt Gum very much in the affordable vicinity for the hydraulic fracking majors. It is not very steep price for them.

Even if the farmer gets Rs10000/qt, he will not make more than Rs20,000/ if the average yield of 4 qt . The totals input cost for growing 1 acer guar sumps up 20,000/ (add the land lease, cooly charges,seed cost, fertilizers, pesticides).
If this does not work for industrial consumers , let them find cheap alternative.They can not manufacture overnight to match the demand. They need to establish manufacturing units and find enough raw material .Till they find it. let the farmer enjoy the price. When they find it, farmer can also find his alternative crop.

 

[agrootec]

I think you are not aware with the basic data of Guar In irrigated area the production is 10-12 qt/acre and in rainfed area the production is 5-6 qt/acre. In the raifed area the cost of cultivation is not more than 5000/acre and in irrigated area this is not more than 10000/acre. If you will calculate the lease rate rate of total india’s land the rice will be not sold below 60 rs /kg. That’s why the govt don’t take tax on agriculture. I think you are selling you seed somewhere between 450-500/ Kg. That might be also not certified one. It means you are selling the Guar at Rs 40,000-50000/Qt. the making foolish to the growers. Yesterday you were buying the guar seed for processing. Where is your factory?

 

[ayurgen]

Mr Dear Agrootech,
Why are you wishish famers to sell their guar seed Rs3500?
Can you sell your gold at last year price of 25000?
Do you think the farmers so foolsih to get carried away by your cheap techniques with an evil motive for amassing precious guar commodity at lower price.
People can understand vested interests of commodity traders like you.

 

[ayurgen]

Agootec,

We never claimed we have our own gum factory. We are procuring for our client, Sree krishna Industries, Adampur in Haryana;Not for selling to farmers for plantation purpose.
They require 150 MT per day. If you have guar seed, contact them.

 

[ayurgen]

Agootec,
We only supply known seed varities that is grown in our 40 acres land. Guar seed self- polinated. The farmer can use the seed grown in his filed again for sowing.
VIKAS WPS also supplied aroung 300MTs non-certified seed to Anthapur farmers as AP goverment failed get seed from Rajastan Seed Corporation
This is not the case with cotton which is cross polynated.
We are not charging the price of 400- 450 as you said. We also market the farmers' produce.

 

[ayurgen]

agootec,
What is the tangible benefit the farmer get from certified seed? Is it germination?(The famers can verify before sowing)Is it seed-treatment?( Farmers can treat the seed with their choice of quality pesticides).
When the farmer can do on his own that is followed in certification? why should he pay high price for the the little process.
The farmers who planted so called certified seed in AP got 2qt/acer.Go and ask farmers surrounding Rangareddy, vikarabad. They will tell you the certified seed.
After paying the huge price of RS3000, another 2000 is enough for the farmer to pay for land lease, labor, fertilizers, pesticides, harvesting and storing.

 

[ayurgen]

agrootec,
Where did you cultivate guar? Is it on the earth or on the moon? or Did you find new planet for cultivating gaur? -Where the cultivation cost per acer is 5000 and where the yield is 12qt.
Why are ambushing so much of anger and frustation? We do have our own right to express our view on the market as you have. Support your views with established data.Do not mud slung on others with personalized attacks.

 

[agrootec]

Every one can easily understand your interest of selling normal seeds at boolish rate.By showing the high price to the growers you can sell your seeds only. do you know 12 month before the rate was 3000/ qt. with in three month it was 35,000/ qt. after one month when the NCDX stopped forward trading , the rate was 5000/qt. up to last month it was only 8000/qt. just before 10 days it was 15,000/qt. today it is only 11,000/qt. can you explain the reason to the farmers. why there is so much fluctuation. just becouse of speculation only. Can you show the picture of your certified seed bag here....

 

[agrootec]

Why the Adampur gum factory will purchase the guar from you? there are so many grain market near Adampur. Have you ever been in Adampur. Who will pay the transportation.? The quality of your Guar will be not bold as the nearby area of Adampur. You are sourcing Guar for Adampur from Hydrabad. It is just like a person sitting in Punjab is sourcing coconut for Chennai Factory.

There is fluctuation of 4000/ qt with in just 7 days. who will bear this loss. The right fact is that no Guar gum factory is buying Guar for processing from todays market and on today's market rate because of this fluctuation.

 

[agrootec]

For one acre 6 Kg seed is sufficient as per today's rate of uncertified seed as you are supplying, is 110/kg that will cost only 660 /- ok. 1000 field preparation and one weeding 750 Rs cutting 750 Rs threshing 500. this is for rainfed condition. The rainfed land lease is also very low. 98 % Agriculture cultivation is on unleased land.

 

[agrootec]

Vikas WSP supplied 300 Mt seed. The Guar is being cultivated since centuries first time i am I seeing that any Guar processing industry is supplying the seeds to the farmers. Do you know Hindustan Gum , which is largest Guar Gum producer in world. First time I am seeing that the Gum factory from Adampur is sourcing Guar from Hydrabad.

 

[agrootec]

For a long term purpose the Guar is good cash crop, but the speculator and stockist will make it garbage only. The person having half knowledge will add fuel in fire.........only...

 

[varma543]

Confusion of taking Guar seeds

Dear Ayurgen/Agrootec,

I have seen your posts from couple of weeks, Thanks for sharing your experience with us.

I am from AP after seen your posts I inspired from you guys and now sowing 30 acres.

Two months back I sowed in 3 acre land as a trail version, for this I took the seed form Gujarat cost of 300 Rs per KG.

As per my previous experience total cost for 1 acre is between 17K to 20K including land lease.

Can you please see my bellow concerns

1. What is the best price that you are going to provide me.
2. Are you giving the seeds directly from your previous cultivation by grading good quality in that Or you are doing any kind of germination on top of that.
3 .Now the guar price will be the 12,400 /Qt but your seed cost will be the around 50,000/Qt . Why this much difference in seeds really are you going to add this many chemicals on your seed?
4. Are you willing to take the buy back from my side as per current market price?
5. I heard some voice from you certified seeds what is the advantage of taking that?
6. If we buy the seeds from you will you able to give guarantee for the seeds and after harvesting will you buy the seeds" if Yes then give the full details like point of contact.

Can you please reply both of you and share your things.

As a farmer I know the pain if it fails or not worth for any cultivation.

If you are ready for my concerns right away send me your A/C details I will transfer the money and get it done today itself.

I can bet you in front of all in coming 6 months I will place an order for 400 acrs.

Thanks
Varma.

 

[agrootec]

Mr Varma, I am not a service provider here. Neither i am selling nor i am buying. I am telling you the right fact.

Certified seeds mean the some thing is standard as written. germination percentage , foreign material, name of variety. In more spectrum we can say guarantee, which you can challenge if some thing is not as per standard.

Doing agriculture on leased land is just like. If Tata start to calculate the land lease amount for its land or any other Dam start to calculate the land lease rate, but you can add it. Please let me know the brief calculation of your 17,000. As per i understand you land lease rate is around 6000-7000/acre/year. Can you give brief bifurcation.

No one will give you buy back gaurantee at the current rate, reason is clear there is too much fluctuation, no one is confidant about the exact demand of the Guar.

This is same thing which happened with turmeric no one is ready to buy it at rs 50/kg. Then what made it 250/kg. The demand or the just speculation.

The seed treatment chemical will not cost more than Rs 25/ kg seed. The certified seed are grown in best cultivation practices with more investment to keep the quality of seed.

I am sure that if grow the guar you product will be sold. If you don't find and Market you can come to any Rajasthan market, Jodhpur Market, Nokha Market, Bikaner Market or Ganganagar Market. Your product will be sold in open auction at the current rate of that time.

Question is not about the cultivation and profit. The major question is that some selfish people are making it mess. You know there is old saying if the knife come is contact with watermelon, the loss will be at watermelon side. the farmer is watermelon.

The oil company are with full inventory of last year and there is bumper production this year. There is not major export order you can check with APEDA. at the same time you are showing the farmer the promise of boolish rate......

Govt is keeping eye whole the system that why they have banned the forward trading. In last year as per SEBI and ASSOCHEM , in a single day too much guar was traded which was equal to total annual production ofd India. Govt put the ban on guar forward trading and the rate was on the ground 5000/qt from 35,000/qt with in 7 days.

The grower must grow Guar but be keep away to be played from the hand of the selfish people, who can make loss in long term for farmers.

 

[ayurgen]

Thanks Mr.Varma for sharing your guar cultivation experience.
The cost of cultivating guar on an average ranges between Rs10000 to Rs15000 based on the location, soil, season and seed cost. In rainy season the labour charges, pesticides, fertilizers are usage are high. These are real figures drawn from various gaur farmers in Andhra pradesh. Mr agrootec might have collected cultivation costs from different states where the labor cost is low. As Agrootec said, Guar can be cultivated at RS5000 per acer on rain-fed dry lands like Rajasthan. but it can not grown at such low cost in coastal regions of AP. May be it can be grown with Rs 10000 in drylands.

In Andhra Pradesh in Guntur we had to spend on Rs10,000 per acer in kharif( excluding land lease) .Due to Neelam cyclone , we lost 1/4 of crop in each acer. When we include this , it comes to 15000/. The got 10 -15% black seed.

You will not get good quality seed for plantation at normal mandi price. People who know where to get the seed are paying Rs17000-20000 per qt to the farmer getting good seed that can used for cultivation.

In this situation, you will not get seed at lower price in Andhra Pradesh. At least in this season. you may get it in next Kharif season.

Mr Agrootec!, You asked us - Why Sree Krishna Industries is procuring seed from AP?

Do you know in AP, there around 1000MTs is ready. already some 300MT is lifted from AP to various traders/ buyers/millers in north. It is not we brought them to Hyderabad. I can not bring Halibuton to india if they do not require GAUR GUM.

If you do not believe us. it's your problem. If you want to check with Sree Krishna industries . check with them if they really require guar seed or not. I can give you Company director MR .Naren Agarwal .

 

[visal]

guar seeds for cultivation

I am native of kurnool district, Andhra pradesh state,having around 30 acres of land and I want to cultivate guar in the fields.Where Can I get guar seeds of govt.approved one.What will be the cost of the seed/kg.
How much Expenditure I should invest /acre land including labour cost.
What will be the guar out put /acre.
Where will be the market for guar seed and where will be the market area for guar seeds in Andhra pradesh state.
Thanks for meeting you thro'' email and looking for your early reply.

 

[911440]

Mr agrotech,
i want certified seed ,DO you have?, Plase tell me price if you have,please quote you asking price.
as you said can you provide me certified seed below 150 rupees per kg(Normal seed price 120;+ certifiaction charges cost 25=total 135 rupees),
i want any guar variates for 50 acrs .

are you from AP?

please provide me contact details or complete address.

Thanks

 

[agrootec]

Guar crop is no more a bullish crop. only some consultant and industrialists has made it bullish. There is no fresh order for guar gum from India. The industrialist has made a stock at low price now they want the rate of guar high so that they can supply their produce at high rate. In this mess the farmer is making loss after 2 month there will be no one to purchase to guar seed from market.

The farmers should sell out the commodity, so that commodity can reach to the gum factories. the Guam factory can supply the gum to the buyers.

Stocking is not solution for a small commodity like guar. The oil companies has find out the alter net, they are working on the commercial production....

 

[agrootec]

The companies are selling the seeds at Rs 400-500/Kg to the farmers. They are supplying the normal seeds, which is not certified . there is a lot of foreign particle.they are making the farmer foolish

 

[agrootec]

These guys are making a joke of farmers. I would like tell you that the rate of guar was went up just because of circular trading, means trading the same quantity many time. As guar is listed on commodity exchange,it worked as fuel in fire..... These trader has made huge stock at higher rate. now they don't want it to come down. There is no any fresh demand of guar gum from the oil company...Even the last time the guar company has made huge stock at low rate that is sufficient for two years. In this year the production is also two three time than last years.

Means up to next 3-4 years there will be no big demand of fresh guar.

Some people are playing with the poorty of farmers. Some companies have started to produce the alternate of guar.

These people want to make foolish to USA by creating the artificial shortage. That is USA they have alternate to go to MARS. They are studying each and every activity...

Now these type of people are doing cut copy past and want to earn money by selling seed at 600/kg.

The ASSOCHEM is strongly opposing the listing of guar on commodity exchange. because this is a small commodity which is grown only in western Rajasthan and Haryana. A person can easily manipulate the trading by investing the small money.