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Guar
is one of the most important crop for export grown mainly in the northwestern
state of India. It is sown in the month of July and harvested during
October- Novemeber. Guar is a rain-fed crop with good rains boosting output and
depressing prices and vice-versa. Guar seed consists mainly of three parts: germ,
endosperm and husk. Guar gum is derived from guar seed which is further refined
to form its powder of different grades and viscosity. The process also produces
the byproduct guar meal which is widely used in animal feed industry due
to its rich protein content. Guar beans are mainly grown in India with 80% of
the world production followed by Pakistan. They are grown in very limited quantity
in U.S., Australia and Africa. Guar gum is known to be widely used
as a thickener and stabiliser in food and beverage industry including ice
cream. It is also used in pharma and cosmetic items. Its use is also found in
industries like textile printing, oil-drilling, mining, water treatment, explosives
etc. India's main export is of guar gum powder followed by splits
and seed. U.S is the biggest importer of guar gum. European Union,
China, Japan, Middle East are other major buyers among other countries. The
prices of guar gum fluctuate at times mainly due to volatality in its production
which is heavily dependent upon monsoon. The estimated production, carry forward
stock and demand play the major role. The market also has speculators and stockists
who tend to bring volatality in its prices. The prices can sometime stay stable
and then rise or fall abruptly. India do have futures platform for guar seed and
guar gum where exporters can hedge their risks. | 
