Guar Seed Market Faces Supply Boost and Price Volatility

Guar Gum

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The overall increase in guar seed arrivals by 23.40% in the major mandis on a week-on-week basis indicates a boost in market supply. In Rajasthan, guar seed arrivals rose by 1,706 quintals (15.91%) compared to the previous week. Haryana experienced a substantial increase of 4,340 quintals (30.68%) in weekly arrivals. Gujarat's guar seed arrivals saw a slight increase of 47 quintals (3.97%) week-on-week. This marginal rise suggests a steady but slow pace of arrivals, possibly indicating a consistent but limited supply.

The major reason behind the increased arrivals is the offloading of older stocks amid the price increase. The guar market faced a bearish price trend in the last 2-3 weeks, so the improvement in prices during the reviewed week prompted farmers to sell their stock at the current market rate.

With the increased supply, Guar seed and gum prices may experience volatility. If demand remains strong, especially from export markets and the domestic industrial sector, prices might stabilize. However, if demand lags behind the rising supply, a short-term price correction could occur.