Guar Gum in India

Guar gum is India’s largest commodity export to the US. 

“From the global supply perspective, India is currently a dominant global producer of guar, accounting for about 80 per cent of world production. In India, the largest production centres are Rajasthan and Gujarat, which is where the big export surge is presumably originating. This concentration pattern provides a possible explanation for the price surge in 2012-13. Anticipation of a drought, which could have significantly reduced production in India (as happened in 2009-10), may have led to advance buying, pushing prices up.”

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Guar Gum Growing in the US?

At New Mexico University’s annual field day at the NMSU Agricultural Science Center this month, area farmers were introduced to the desert crop guar gum. 90% of the world’s guar gum is grown in India. Let’s see what the research at the science center comes up with, and if we can increase the production of guar gum in the US! 

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Don’t forget about our lab’s guar gum replacements! 

Stabilizer EC Description: A proprietary blend of natural gums; non crosslinkable. Uses: It’s synergistic reaction is an ideal replacement for guar gum in erosion control applications as a tackifier, hydro‐mulching and hydro-seeding as a tackifier, oil drilling as a linear gel, and other mid‐viscosity applications.

Stabilizer KK Description: A blend of natural gums; non cross‐linkable. Uses: In hydroseeding as a tackifier and other lower viscosity applications.

Frac ST Description: Cross‐linkable with organic based crosslinkers and performs closest to Guar at same use levels. Uses: Oil drilling industry.

CJ4 Uses: Oil drilling industry.  

Stabilizer EX55 Description: A proprietary blend of hydrocolloids. Uses: Carpet printing and continuous dyeing fields.

Stabilizer ECDF Uses: Wet pet food manufacturing

Ban lifted on futures trading in guar gum

Prices of guar gum look set to rise once again, with the lifting of the ban on futures trading. 

“Global demand for guar gum is muted at present, with oil companies expected to have amassed significant stocks to meet their requirements for the time being. Substitutes to guar gum have also been found, giving the oil companies the wherewithal to make a switch in case of price spikes.”

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Guar is India’s Top Farm Export

Guar gum is now India’s top farm export, overtaking rice and cotton. Thanks to the US oil and gas industry, the natural product, guar, is in high demand. 

“The remarkable shift in US oil imports and its march toward self sufficiency has vital implications for global security and strategic affairs and experts say it will help redraw the global energy and security boundaries.” Pro of fracking: the US is becoming less dependent on the Middle East. 

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Guar gum costs squeeze margins

Higher costs for guar gum is squeezing margins for oil field firms such as Baker Hughes. 

Furthermore, by fracking, the US is expected to become the world’s largest oil producer by the end of the decade. Good news for reducing our dependency on foreign oil. 

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Check out our guar gum replacement for the oil drilling industry. 

 

The Guar Gum Bubble

Guar gum pricing is about $7,000/ton, down from $27,000/ton back in May this year. 
Also, India normally sells 60% of its Guar to the oil industry and 40% to the food industry. But this year, the food industry has only bought 20% because of the high prices.

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US oil drilling and food companies are turning to Guar gum alternatives. Our company has Guar gum alternatives: for both industrial (oil drilling industry, hydroseeding, carpet dying, leather tanning, explosives, cat litter) and food (bread, ice cream, yogurt, salad dressing, juices, wet pet food). Contact us today for more information. 

 

Did Guar farmers benefit from price hike?

“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.”

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Guar update

Rainfall is low in most of the guar belt. Supply of guar is very tight in the open market; most of the guar processing units are shut down due to no margin to convert seed into splits as there is tight supply situation. With the monsoon delay, prices may go further up.