India: Guar seed market loses its charm in 2020 – Trade persons, farmers eager for optimistic news as business prospects improve

Published 2021년 1월 10일

Tridge summary

The Guar seed industry has experienced significant challenges in 2019 and 2020 due to weak demand from global markets, particularly the US, and the COVID-19 pandemic. The industry was already negatively affected in 2019 by reduced demand from oil rig companies and the leading producer, India, saw a decrease in production as farmers shifted to other crops. However, the year 2021 is expected to bring promising opportunities with potential increases in exports to the US and improved prices for farmers and industry participants, assuming the US shale industry recovers and domestic demand improves.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

It has been a dismal story for Guar producers as well as persons associated with its business. Guar prices were already negative affected in 2019 by weak demand from global markets, and in 2020 the ongoing COVID-19 pandemic made the situation even worse for the Guar seed industry. Demand from the oil rig companies where usage of guar gum to extract oil is higher, halted. World markets had turned sluggish mainly because of a slump in demand from the largest buyer, the US, and reduced application in shale oil fracking due to lower crude prices. Gur gum, a processed product of Guar seed, has a higher export demand due to its utility in the Crude Oil Industry. India enjoys the leading position in production as well as export of this product in the world market. Approximately 80 % of global demand is contributed by India. Xanthan gum is a common additive found in everything from cosmetics to ice cream, and acts as a thickening agent, binder, as well as emulsifier. Guar seed production ...

Source: Krishi Jagran