Mayfair Commodities_KK

Overview

Many changes have occurred in the Guar market over the previous months, the introduction of the Goods and Services Tax, limited supplies, the monsoon and the declining prices.

 

Supply

gst-2459328_640The introduction of GST across India at the beginning of this month has caused some problems because exporters are not yet clear on the procedure. This could impact exports in the short term. The first round of monsoon rains covered the majority of the Guar growing regions in Haryana, Punjab, Gujarat, and Rajasthan. Final crop yields will be dependent on the timing of the second round of rains, too early or late and the crops will be destroyed. 

The first round of monsoon rains covered the majority of the Guar growing regions in Haryana, Punjab, Gujarat, and Rajasthan. Final crop yields will be dependent on the timing of the second round of rains, too early or late and the crops will be destroyed. Manufacturers are struggling to achieve a consistent supply of seeds. Vendors of seeds/splits are hoarding stock because they purchased at lower prices than the current market. They have the capacity to hold until information on crop yields re-released. 

Manufacturers are struggling to achieve a consistent supply of seeds. Vendors of seeds/splits are hoarding stock because they purchased at lower prices than the current market. They have the capacity to hold until information on crop yields re-released. Supply should ease after the second round of rains and during the harvesting period between September and October. 

 

Demand 

tug-boat-2088663_640The demand for Guar Gum has reduced over the last few weeks, however, official export figures are yet to be released. Strong rainfall during the first round of the Monsoon and slow demand has resulted in 12-14% reduction in prices since April 2017. This is great news for anyone who is currently on the market or looking to cover future requirements.

 

Outlook 

Although there are concerns over the current supply of Guar seeds, manufacturers have reported that there should be enough supply to meet the current demand. The sentiment in the market is an anticipated price increase over the coming months. Continued positive rainfall will instigate further sowing activities which should lead to a good harvest in October.

 

 

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