Guar Gum Background

Topics: Guar gum, Gums, Natural gum Pages: 20 (3883 words) Published: August 16, 2011
Indian Guar Gum Market 
▪ India has been a major player in the context of guar and guar gum in the global market. ▪ India’s production contributes to 80% of the world’s total production figuring up to 6 lakh tons. ▪ Rajasthan wholly retains the credit for India’s position producing 70% of the production itself. ▪ Guar is largely consumed as a vegetable in the Indian subcontinent. It is also used in making pickles. ▪ 25000 tons of the total production in the country constitutes to the domestic market. ▪ Guar gum has a vast range of industrial applications and the major share of demand comes from various industrial sectors only. ▪ India is the leading net exporter of guar seeds and guar gum. The country exports over 117000 tons of guar and its derivatives, which is comprised by 33000 tons of refined split guar gum, and 84000 tons of treated and pulverized guar gum. ▪ The net worth of the Indian exports is estimated over Rs 500 crores. ▪ The production list of guar is dominated by India as a leading producer of this crop. The consumption pattern of guar seeds is largely influenced by the demands from the petroleum industry of United States of America and the oil fields in the Middle East as the derivative products of these seeds are quite useful in the petroleum drilling industries. ▪ United States alone constitute to around 40 thousand tons of guar and its derivatives demand. ▪ Also, in rest of the world, the trend of consumption has increased with time that has lead to the introduction of this crop in many countries.


The major importing countries of Indian Guar Gum and its derivatives are

▪ United States of America
▪ Germany
▪ France
▪ United Kingdom
▪ South Africa
▪ Netherlands
▪ Italy
▪ Japan
Projected India Seed Crop + Carryover: 4.5 million + 3.0 million bags = 7.5 million bags of 100 kgs each (splits/powder production potential of up to nearly 200,000 MT, although there is normally at least 1 million bags of carryover). (2004 Crops by comparison: India 4 million bags crop + 5 million bags carryover = 9 million bags). Global Demand: 650,000 MT seeds +/- 10%.

Major Exporter of Guar Gum

India is also the world leader in the exports of guar and its derivatives followed by Pakistan. The major countries exports guar gums are ▪ India
▪ Pakistan
▪ Italy
▪ Morocco
▪ Spain
▪ France
▪ Greece
▪ Germany

Major Importer of Guar Gum

The world market of guar is estimated at 1.5 lakhs tons annually. The major importer countries of the crop are ▪ Canada
▪ China
▪ Chile
▪ Australia
▪ Austria
▪ Brazil
▪ Germany
▪ Italy
▪ Japan
▪ United Kingdom
▪ Ireland
▪ Sweden
▪ Greece
▪ Portugal
▪ Mexico

Production of Guar in India

India produces 600000 lakh tons of guar annually i.e. the maximum level of production in the world. It contributes to around 80% share in the world’s total production. The major producing regions of this crop in India are ▪ Rajasthan

▪ Gujarat
▪ Haryana
▪ Punjab
▪ Uttar Pradesh
▪ Madhya Pradesh
▪ Tamil Nadu
▪ Maharashtra
▪ Karnataka
▪ Andhra Pradesh

Guar Gums Market Influencing Factors

▪ Changes in production due to rainfall fluctuation
▪ Demand and supply mismatch
▪ Hoarding and black marketing
▪ Government policies
Supply varies largely between years while the demand is almost constant over the years. There are involvement of speculators and stockiest in the physical market. The commodity is subjected to a long storage period based on demand and market prices. There are no Government rules and regulations governing the production, distribution, marketing, exports or imports of the commodity and the market forces determine the prices. Rhodia in India

Rhodia has three companies in India:

▪ Rhodia...
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