Guar seed futures prices fell by Rs 183 to Rs 5,861 per 10 quintal last week. Guar seed futures for September delivery were trading at Rs 5,861 on the National Commodity and Derivatives Exchange, down Rs 183, or 3.03 percent, per 10 quintal, with 34,815 lots of open interest.
Increased supply from growing regions, according to market participants, can be blamed for the decreasing trend in guar seed prices. Previously, on August 25, 2021, Guar seed futures prices jumped by Rs 362 to Rs 6,410 per 10 quintal as speculators boosted their holdings in response to a strong trend in the spot market.
Guar seed for September contracts climbed by Rs 362, or 5.99 percent, to Rs 6,410 per 10 quintal on the National Commodity and Derivatives Exchange, with an open interest of 61,780 lots.
Before that on August 17, 2021, in futures trading, guar seed prices fell by Rs 61 to Rs 4,869 per 10 quintal. Guar seed futures for August delivery were trading at Rs 4,869 on the National Commodity and Derivatives Exchange, down Rs 61, or 1.24 per cent, per 10 quintal, with an open interest of 280 lots.
Farmers or Processors May Expect Greater Returns in the Upcoming Months
Guar is a short-season crop that is primarily rain-fed, requiring little irrigation, and is primarily grown in Rajasthan and Haryana. Most of the producing regions of North Rajasthan and Haryana did not receive enough rainfall during June this year, causing farmers to be apprehensive about a drop in yield compared to the previous year.
There have been discussions about the sowing rate slowing down due to a probable change in the acierate toward oilseeds, cotton, or pulses. Because these crops produced outstanding returns last year, planting intentions are still higher than for the guar seed crop.
Whether its export offers or mandi pricing, prices are now fairly low. Overall, growers and processors (who manufacture guar gum from guar seed) have a better chance of making a profit presently.
