Chennai: Guar gum exports are likely to be affected, while domestic consumption may also fall in view of the global economic slowdown. Demand from countries such as the US and Europe is likely to be hit in view of the slowdown and crash in the commodities market, especially crude. Guar gum exports were initially pegged to reach 2.25 lakh tonnes this fiscal, but now the industry expects it to be 1.75 lakh tonnes only. On the other hand, domestic consumption was hoped to be around 50,000 tonnes but could now be lower at 40,000 tonnes. Global recession and slowdown in demand is very much evident. Guar or cluster beans is a legume crop that grows best in the semi-arid regions in the country. In India, guar is grown primarily in Rajasthan.
It is also grown in Haryana, Punjab, Gujarat and Madhya Pradesh. India is the major producer of guar seed and gum, making up 80-85 per cent of the total world supply. Crude prices have declined to below $70 a barrel and exploration activity could slow down. Due to lack of demand, guarseed rates have currently fell to Rs 1,450 a quintal from over Rs 1,790 quoted during August-end.
It is also grown in Haryana, Punjab, Gujarat and Madhya Pradesh. India is the major producer of guar seed and gum, making up 80-85 per cent of the total world supply. Crude prices have declined to below $70 a barrel and exploration activity could slow down. Due to lack of demand, guarseed rates have currently fell to Rs 1,450 a quintal from over Rs 1,790 quoted during August-end.
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