“Whether Guar Farmers Benefited from Price Hike?
However, a pertinent question to ask is: whether guar farmers benefited from the steep hike in prices? The answer is No because guar farmers had sold their produce in the spot markets several weeks before prices began spiraling upward in a manipulative manner in the futures markets.
The guar farmers do not directly participate in the futures markets so as to benefit from upward price movements. The majority of guar farmers are subsistence farmers who sell the crop immediately after harvest and therefore do not store it in godowns/warehouses to benefit from potential price increase in the future.
On the contrary, guar farmers are paying the price for price manipulation in the futures markets as they have to buy expensive guar seeds for their next crop . Besides, several guar gum processing units in Rajasthan have become idle because of abnormal hike in the prices of raw material.”