The much-awaited first IMD (Indian Metrological Department) report has been published and states that the 2014 monsoon will be below average. The monsoon season falls between June and September of each year and is vital as over half India’s farmland lacks irrigation.
We saw Guar prices remain range bound for the past month however they’ve now increased as a result of the findings published within the IMD’s report. The next Monsoon forecast to look out for is published in June.
The supply of Guar Seed has already drastically reduced as farmers concentrate on other crop including barley, mustard and wheat. Guar Seed brought to market last week is said to have been nearly half of that from the week prior. This is expected to last for at least another couple of weeks but should get back to normal after.
Demand from all sectors is good with an increase from the food industry, which has been awaited. China has been coming in strong as a big buyer of Guar Splits.