By Meenakshi Sharma
MUMBAI, Sept 13 (Reuters) - India could turn in a bumper
crop of guar this year as a revival in the monsoon is likely to
help yields and more farmers plant the seed, lured by the high
prices it fetched early this year on strong demand from the
global shale oil and gas industry.
Industrial guar gum is used in drilling and in hydraulic
fracturing or fracking, to extract gas from shale, which has
transformed energy supplies notably in the United States.
India is the world's largest producer and exporter of guar
gum, meeting 80 percent of global demand.
"Farmers who never heard of guar have also planted it this
time. The area sown has increased significantly across the
country and output would also be much higher," said Shikharchand
Dugar, a trader from Jodhpur, a key market in Rajasthan.
Besides the top producing states Rajasthan and Haryana,
farmers in Maharashtra, Gujarat, Uttar Pradesh and Madhya
Pradesh have also grown small quantities of guar, which is
usually sown in June and July and harvested in October and
Traditionally, guar used to be grown in desert regions
spread across Punjab, Haryana, Rajasthan and Gujarat as it
requires well-drained soil.
"After attending a seminar (on guar) in my area, I decided
to cultivate guar. Prices were very attractive and monsoon
forecast was also weak, so all conditions were favourable," said
Kailash Bajaj, a 48-year-old farmer from Amravati district in
Maharashtra, who has sown guar for the first time.
Bajaj has sown guar seed on more than 7 hectares of land,
replacing soybean, and hopes to expand the area next year if he
gets good returns.
In late March, local commodity exchanges had halted trading
in guar futures amid a regulatory inquiry after prices soared
more than ten-fold.
By early August, the market regulator had still not taken
any decision on the re-launch of guar futures.
BETTER YIELD ON RAINS
A pickup in September rains is expected to improve the yield
of the crop, which is now close to maturity. But excessive
rainfall in some areas could, on the other hand, hit the
standing crop, traders said.
"Production is now seen higher than last year because of
recent rainfall activity. The area under the crop could not be
extended but yields would improve," said Purshotam Hissaria,
president of the Indian Guar Gum Manufacturers Association.
A lull phase of the monsoon rains during the initial sowing
period had restricted the acreage covered.
India's monsoon rains were 21 percent above average in the
week to Sept. 12, the weather office said on Thursday, the third
straight week of heavier than normal rains, abating the threat
of a widespread drought in the south Asian country.
Farmers in Rajasthan had planned to plant a third more guar
to take advantage of soaring global prices spurred by oil
But sowing was curbed by a lack of seeds after farmers sold
so much last year they kept less back for replanting.
To counter this, a few exporters and traders distributed
free seeds, although with certain conditions, to farmers to
ensure supplies, while in some areas farmers paid hefty premiums
to buy high-yielding-quality seeds.
Farmers in the top producing Rajasthan state have so far
sown guar on 3 million hectares as compared with 2.76 million
hectares a year ago, data on the state farm department's website
showed. Last year total acreage under guar in Rajasthan was 3.09
million hectares and output was 1.84 million tonnes.
Traders expect delayed rainfall could push back supplies in
the spot market by a fortnight to late October.
At Jodhpur, a key market in Rajasthan, guar seed prices
dropped to 7,000-7,500 rupees per 100 kg from a high of 30,000
rupees reached in March, but remain well above a year ago.