2014 Guar Gum Report: INDIA
THL Special Report
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2013 was a strong year for guar sowing and production in India. The total sowing area rose by 21 percent in 2013 to reach 10.6 million acres. Rajasthan, Haryana, and Gujarat – the three key guar-producing states –exceeded the sowing area target set by their respective agriculture departments. Non-traditional guar cultivators other Indian states also showed keen interest in the crop in 2013.
The complex nature of the guar gum industry in India warrants close monitoring of the market at all times. The industry is starting 2014 with a strong stock of guar seeds, ample processing capacity to produce guar gum, and steady global demand. Despite these positive market fundamentals, the guar industry in India remains exposed to price volatility because of potential impact from additional market factors. These factors, which are mainly specific to India, have the potential to disrupt the guar market.
The opaque nature of guar gum’s supply chain in India demands continuous, close monitoring of developments on the ground to better predict pricing and supply trends as 2014 season unfolds. While prices look stable at this juncture, there are several unknowns that could have a significant impact to the stability of the guar market. These include:
- Will the nexus between influential traders and processors once again influence guar gum prices this year?
- Will the Indian regulator, Future Markets Commission (FMC) allow futures trading of guar on Indian commodity exchange?
- Does FMC have the mandate and ability to check insider trading, cartelization and price manipulation if guar gets relisted on the commodities exchange?
- Is the government contemplating policy changes for guar gum?
- Are there any socio-political-security trends that have the potential to impact the movement of freight from guar gum processors to the export ports in India?
- What will happen if export-ports encounter labor issues or greater capacity constraints or a major security breach takes place?
- What is the current sentiment of the farmers? Will they once again prefer growing guar over other competing crops in larger numbers?
IN THIS REPORT
IN THIS LATEST REPORT, the research team at Three Headed Lion reviews the current pricing and supply trends by evaluating key underlying market fundamentals.
The report also provides:
- dashboards to show how market fundamentals are performing
- uncovers the Guar Gum supply chain by revealing the opaque elements in each step from farm-to-export and presents a deep analysis of the guar gum industry in India by assessing each element of the supply chain- farmers, traders, guar gum processors and logistic infrastructure.
- reveals new developments on the ground, , with key insights from industry leaders and participants
- an overview of the current state of the Indian Guar Gum market
- in-depth review of critical factors impacting the supply and price of Guar Gum
- current sentiment of key stakeholders - farmers, traders, processors, and logistics operators
- an outline of historical trends and a forecast for 2014
- an assessment of the current state of the guar industry lifecycle in India
- market fundamentals dashboards by each supply chain element
- insights from interviews with key administrators, government officials, farmers, traders, processors and logistics operators
- expert recommendations for Guar Gum buyers
- detailed charts and graphs on pricing trends and production yields
- a comprehensive directory of India’s Guar Gum processors
- a comprehensive directory of India’s Guar Gum warehouses
- a comprehensive directory of India’s Guar Gum quality assurance consultants
Who should use this report?
Business and financial planners, Business Unit heads, Purchasing managers, logistic managers, Equity researchers, Hedge Fund managers, Investors, Market researchers, and others interested in guar or guar gum.
THL's GUAR GUM REPORT 2014 (FEBRUARY)
74 pages, 31 charts and 7 tables, 2 directories,
with deep industry insights and buyer recommendations
BUY NOW >>
IN DEPTH INTERVIEWS
A list of stakeholders interviewed by THL research team to collect primary data and information include:
- 1000+ farmers across 32 guar producing districts in the states of Rajasthan, Haryana, Gujarat and Punjab
- CEOs of seven leading guar gum producing companies in Rajasthan, Haryana and Gujarat
- Minister of Agriculture, Rajasthan
- Minister of Industries, Rajasthan
- Minister of Agriculture, Haryana
- Minister of Industries, Haryana
- President, All India Guar Gum Manufacturers Association
- 20+ traders across Rajasthan and Haryana
- Director, Department of Agriculture, Punjab
- Director, Department of Agriculture, Gujarat
- Deputy Director, Department of Agriculture, Gujarat
- Sr. Agriculture Scientist and guar specialist, Rajasthan
- Director, Agriculture Research Institute, Haryana
- Deputy Director, Department of Agriculture Department, Rajasthan
- Ex-Seed Corporation Chairman and Farmer, Birwar, Rajasthan
- Deputy Director, Port Authority, Gujarat
- Director, Indian Meteorological Department, Delhi
- Director, Indian Meteorological Department, Rajasthan
ABOUT THREE HEADED LION
THL strives to:
- Provide sound and timely expert analysis & judgment on developments and issues that impact India and the global economy.
- Offer robust understanding of India’s risk environment through political, economic and societal lenses.
- Drill down policy level/regulatory changes to reveal its impacts on sectors, companies & people with varying degrees of purchasing power.
- Unearth what’s trending in India (not on Twitter), but in its buoyant emerging market at macro, commodity and micro levels.
- Provide comprehensive market intelligence and micro level data on key sectors.
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Learn more at www.threeheadedlion.com >>
“"There is good availability of guar in the local markets due to very good production last year.”
(January 20, 2014)
“I have not yet sold my stock from last year, waiting for prices to increase...things don't look promising at this point. I am not sure how much guar I will grow in the next season.”
Pradeep Kumar, Farmer, Haryana.
(January 15, 2014)
“I am not sure if I would go for guar next season. Prices are currently depressed, if they don't pick up in next 3-4 months, I may not go for guar.”
Rameshwar Verma, Farmer, Hanumangarh, Rajasthan.
(January 11, 2014)
“Guar production last year was excellent. But there is definitely less interest in guar at the moment. Farmers are not very optimistics because of the low prices.”
Official in Agriculture Department, Banswada, Gujarat.
(January 12, 2014)