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India’s guar gum exports for 2023-24 dropped 12 per cent in value on lower prices and reduced offtake from key buyers such as the United States, Germany and Russia. Guar gum exports were $541.65 million during 2023-24 over $617.14 million the previous fiscal.
However, in volume terms, guar gum exports were up 2.70 per cent at 4.17 lakh tonnes (lt) against 4.06 lt the previous fiscal, per the latest official data.
Various uses
Guar gum, extracted from guarseed, is used as a thickening and binding agent in the food, textiles, paper, pharmaceutical and oil industry. Highly refined guar gum is used in the food industry as a stabiliser in ice creams and cheese and as a meat binder. Guar gum is also used as an emulsifier in the hydraulic fracturing technique in the shale gas and oil exploration and in other industrial applications such as ore floatation among others.
Guar gum exports, which touched a recent low of $262.99 million in 2020-21, rebounded in the subsequent years to touch a four-year high of $617 million in 2022-23. However, reduced off-take from large buyers such as the US, Germany and Russia impacted the shipments during 2023-24. In value terms, the exports to the US, the largest buyer were down 29 per cent at $106 million during 2023-24 from $149 million in 2022-23. Shipment volumes to US were down 27 per cent at 53,495 tonnes (73,286 tonnes). Similarly, shipments to Germany were down in value at $72.60 million (73.83 million), while the volumes dropped to 47,370 tonnes (51,974 tonnes). Exports to Russia were down at $67.92 million ($72.26 million), while the volumes were also lower at 37,302 tonnes (38,884) tonnes. Exports to Norway were down at $62.76 million ($67.74 million). However, shipment volumes to Norway were up at 96,639 tonnes from 81,527 tonnes a year ago.
Futures contract
Guar gum futures May contract was trading marginally up around ₹10,560 a quintal, while the June contract was hovering around ₹10,710. Similarly, the guarseed contract were trading up marginally on NCDEX. The guarseed May contract for was hovering around ₹5,455, while theJune contract was trading around ₹5,468 on NCDEX on Thursday. Spot prices of guar gum in Jodhpur were marginally up at ₹10,802 per quintal, while the guarseed prices stood at ₹5,505 on Thursday.
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