Delayed Indian monsoon causes guar gum prices to rise

By RJ Whitehead

- Last updated on GMT

Related tags Petroleum

© iStock
© iStock
Indian guar gum prices have risen 17% month on month, supported by the delayed arrival of the monsoon, which in turn has delayed sowing of the new guar crop. 

Despite this price increase, price levels are still significantly down, by as much as 45% year on year, as farmers reduce their crop due to the lower prices seen so far this season and turn to more profitable crops, such as pulses and cotton. 


The monsoon is slightly delayed in India, with the region experiencing 25% below average rainfall in June. Commodities analyst Mintec has projected the areas planted with guar seed to decline by around 20-30% this year. 

Guar gum is used in a wide variety of food and industrial applications, mainly as a thickener in foods or more recently as a drilling aid in oil fields. Its price has been on a downward trend since 2012 when demand peaked due to the boom in shale gas drilling. 

Related topics Markets Supply chain South Asia

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