India’s guar seed exports declined in 2020; hoping for opportunities in 2021

Published 2021년 1월 14일

Tridge summary

In 2020, the Guar seed industry was significantly impacted by the COVID-19 pandemic and a decrease in demand from the global markets, especially the US, which accounts for a large portion of the demand for Guar gum used in the Crude Oil Industry. India, the world's leading producer and exporter of Guar, saw a drop in production and export quantities, with trade tensions between the US and China further affecting oil drilling activities in the US. Despite these challenges, Guar producers are hopeful for better prices in 2021 as they anticipate an increase in US crude refining.

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 in 2020. 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 far 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. Guar 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 over the year has dropped considerably ...

Source: Indoasiancommodities