Tifac wants guar taken off commodity exchanges to arrest price volatility

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By PTI | 16 Dec, 2014, 08.55PM IST

MUMBAI: A think-tank under the Union Science and Technology Department has called for freeing guar gum from the clutches of speculators and commodity exchanges to bring about price stability.Gaur is currently trading at Rs 8,832 a quintal and the price is expected to remain high on expanding demand from the US shale gas industry and is estimated to shoot up to Rs 11,729 a quintal by 2020, according to the Technology Information, Forecasting and Assessment Council (Tifac).

Guar Seed Arrivals

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Up until now an estimated 6.5 million bags of Guar Seed have come into the markets. This represents nearly 35% of the overall Guar crop of this year.

Guar Splits Price Movement

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Shown here is the Guar Split Price Movement from April 1,2014.

 

Guar seed arrivals in full swing

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Guar seed arrivals from the new crop are in full swing and the number for Saturday, 1 Nov 2014, touched around 150,000 bags. As a result, prices have been declining and have gone down by around 5% over the last 7 days. Although it is impossible to predict the “bottom”, we might be quite close to it and the current price levels present a very good opportunity to cover some volume for at least the next couple of months.

Guar seed crop estimate 2014-15

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The Rajasthan State Government’s estimate of the Guar seed crop for 2014-15 is nearly 1.34 million MT or 2953 million lbs.

Click here to view the official report.