Corona Weighs On Guar Complex, Spot Prices Further Down In Rajasthan

NEW DELHI (Commodities control) Guar complex further crashed today in spot markets of Rajasthan, Haryana and Gujarat. Spot prices lost up to 2-3 percent when future contracts touched similar low levels. However, the prices recovered partially in afternoon trading session. Finally, Spot prices lost around 1-1.5 percent while future contracts closed with losses of up to 1.22 percent.

New wave of corona infection in India and the world weighed on guar complex. The prospects for improvement in guar gum demand following increased number of rigs now seems to be shattered due to corona crisis. According to exporters, gum export cannot fulfil industries’ expectation until crude oil sector’s demand revives. Current situations are bigger chellange for the industry.

Weak gum demand and future’s downfall caused for heavy losses in mandis where farmers had to sell their crop as quite lower prices. Guar seed was sold as low as Rs. 3500 per quintal. Today, various mandis have lost up to Rs. 80 per quintal. Guar seed lower Rs. 50 to Rs 3750-3850 (Mill Delivery) in Jodhpur. Guar gum split and powder also lower Rs. 100 per quintal in the same market.