The report provides a complete overview of market of Guar in India and the world.

1. 2015

2. Guar Industry Outlook 2015
Published
November, 2013
Research Co-ordinator
Dr Hema Yadav
(Deputy Director, NIAM)
Survey Co-ordinator
Dr Shalendra
(Research Officer, NIAM)
Survey Team
Ajit Kumar Prasad*
Pratima Goswami*
Rahul*
Sandesh Pednekar*
Data Analysis Team
Anu Peter V*
Enamul Haque*
Manisha Shah*
Report made for : National Commodity & Derivatives Exchange Limited
* Management Students of Post Graduate Diploma in Agribusiness Management (2013-15)

3. Foreword
India is the largest producer of guar and contributes about 80% of total guar and guar gum production in the world.
Guar Gum is an important ingredient in producing food emulsifier, food additive, food thickener and other guar
gum products. Guar gum is purely an export oriented commodity with about 80% of total output exported from the
country.
The Guar Industry has evolved from being a used for domestic and ruminant feed purpose to finding used in industry.
Owing to new technology, research and development the natural gum property of guar had varied applications
from food, pharma industry to oil Industry. The guar industry is poised to grow and develop owing to high focus
on research in Universities and technical institutes of the world. The keen interest of industry, government and
community will result in cohesive partnership to foster profitable global value chain of guar gum.
The study is based on consultation with various stakeholders like farmers,traders, processors, exporters,
researchers, etc. at various locations in Rajasthan and Haryana and taken their views for holistic development of
the industry. The study has also referred to the major data sources of research paper, government publications, and
data from industry and markets.
The study focuses on analysis of price movement, weather determinants, demand from industry, and requirement
of research and market development.
In order to promote the exports of guar and its derivatives from the country, need of the hour is long term planning
with single vision by taking into account the views of prime stakeholders.
The study has been undertaken by Dr Hema Yadav and Dr Shailendra, faculty members, NIAM.
I am hopeful that this report will be used in envisioning strategies which unites all parts of the value chain and links
the supporting pillars to maximize benefits to all sakeholders in the industry
R P Meena, IAS
Director General
NIAM, Jaipur
I

4. About NIAM
CCS National Institute of Agricultural
Marketing (NIAM), as an apex Institute
for agricultural marketing, is playing
a vital role in expediting the reform
process, creating awareness, preparing
professional managers through its
mandate for research, consultancy,
training and education programmes.
NIAM
is
an
autonomous
body
under the aegis of the Ministry of
Agriculture,
Government
of
India.
Training is imparted to higher and middle level executives of the state agricultural marketing board, Directorate
and line departments and farmer groups of various states. Consultancy is carried out for setting up of markets
and various market infrastructures as well. Action oriented research is conducted by NIAM to give solutions for
specific problems in the field of agricultural marketing. With a view to making agricultural marketing research a
more effective instrument for making agricultural marketing system of the country an effective system of rural and
agricultural change and strengthening the policy making and planning machinery, the institute undertakes and
sponsors research in agricultural marketing relating to the problems of regional and national importance.
Apart from Training, Research, Consultancy in Agricultural Marketing NIAM offers two year Post Graduate Diploma
Program in Agribusiness Management PGDABM) for students with undergraduate degree in Agriculture and Allied
Sciences.
The Institute is playing a pivotal role in creating awareness amongst farmers, creating research base on marketing,
post-harvest management, commodity futures, information and communication technology, grading and
standardization. NIAM is also playing a key role in imparting international training programmes for agriculture
marketing officers.
II

5. About NCDEX
As India's leading online exchange, NCDEX is where customers repose trust. It offers the widest range of benchmark
products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its
electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange
in the country promoted by national level institutions. The institutional promoters and shareholders of NCDEX are
prominent players in their respective fields and bring with them institutional building experience, trust, nationwide
reach, technology and risk management skills.
NCDEX – Some Facts
Established in 2003, NCDEX offers futures trading in more than 30 agri and non-agri commodities.
Its shareholders are Shree Renuka Sugars Limited, Life Insurance Corporation of India (LIC), National Bank for
Agriculture and Rural Development (NABARD), National Stock Exchange of India Limited (NSE), Indian Farmers
Fertiliser Cooperative Limited (IFFCO), Jaypee Capital Services Limited
Punjab National Bank (PNB), Build India Capital Advisors LLP, Canara Bank, IDFC Private Equity Fund III, Oman
India Joint Investment Fund
CRISIL Limited, InterContinental Exchange (ICE), Goldman Sachs Investments (Mauritius) I Limited.
It had 848 registered members and client base of 20 Lakh as on 31 July 2013
Trading conducted on more than 49,000 terminals across 1000 centers in India as on 31 July 2013
It facilitates deliveries of commodities through a network of over 594 accredited warehouses through 8 Warehouse
Service Providers with holding capacity of around 1.5 million tonnes.
Average deliveries of 1 lakh MT at every contract expiry; Average delivery ratio for Q1 of financial year 2013-14 is
98 %
Introduced N- Charts – an advanced web based charting tool provided to users free of cost, helping them in technical
analysis.
Launched COMTRACK® - a proprietary electronic warehouse accounting system
Exchange for Physicals - recently announced EFP (Exchange for Physicals) facility in 18 contracts traded on the
Exchange platform, which will help trade participants in addressing their counterparty and business risks inherent
in the bilateral transactions in the physical market.
III

6. Table of Contents
Executive Summary
Chapter-1: Introduction
Chapter-2: Industry Outlook
1
3-6
7-14
Chapter-3: Guar Seed Marketing and Supply Chain
15-18
Chapter-4: Price Movement of Guar
19-21
Chapter-5: Guar Trade Scenario
23-29
Chapter-6: Research and Development Efforts in Guar
31-33
Chapter-7: Issues and Challenges in Guar Industry
35-42
Annexures
Annexure-I
45-50
Annexure-II
51-52
Annexure-III
Annexure-IV
55
References
IV
53
56

7. Executive Summary
The report “Guar Industry Outlook 2015 gives an overview of guar industry with respect to 2015 by giving future
perspective with reference to past. The report can be an important information source for the stakeholders to make
informed decision with respect to highly uncertain future of guar industry.
The Guar Industry has evolved from being used for domestic and ruminant feed purpose to finding applications
in industries. Owing to new technology, research and development the natural gum property of guar has varied
applications from food, pharma industry to oil Industry to and is poised to grow.
India is the major producer of Guar Seed followed by Pakistan and US. India's guar seed production is subjected to
temporal fluctuations and it ranged between 2-18 lakh tons during 2005-06 to 2012-13. The area under cultivation
of guar in India has not changed much from last 10 years even then the production has increased to a great extent
due to increasing productivity. Rajasthan is a major producer of guar among Indian states. The State produces more
than 70% of total guar seed produced in the country. Haryana is the second largest Guar producing state in India
which contributes around 11% of total guar seed production. The productivity of guar in Haryana is much higher than
the productivity in Rajasthan.
The processing of guar gives three products mainly viz. guar splits, churi and Korma. Guar split is used as a main
products for different industrial uses while Churi and Korma are used as cattle feed.
Nearly 75-80% of the Guar Gum or other derivatives of Guar seed are being produced in India and are exported
mainly to USA and European countries. The value added derivatives of Guar seed are used by the various industries
in India as well as abroad. Pakistan, Sudan and parts of USA are the other major Guar growing countries which
produces nearly 20% of world guar seed production.
India contributes for more than 80% of the world guar split supply. Total world supply of guar split is around 4-5 lakh
tonnes in a normal year. It increased upto 8 lakh tonnes as has been recorded in the year 2003-04. The consumption
of guar gum by Fast Hydrated Gum (FHG) industry was limited to around 30%. But at present the scenario has
changed and the major consumer of guar gum is FHG industry.It is also seen that the demand from food industry
has reduced to around 20% only from 50-55% prior to the year 2005.
The market of guar has witnessed a shift which was quite unexpected for the participants in the industry. The mean
price of guar from 2007 to 2011 was moving around Rs. 2000/qt. to Rs. 2100. But the high price fluctuations in the
year 2012 the mean price of entire period (2007-2013) shifted to a new high at around Rs. 3600/qt. at Jaipur market.
The similar price movement has been witnessed by almost all the markets to the same extent. Mean spot price of
guar seed for the last two year was around Rs. 7600/qt. In 2013 the price is moving towards stability.
Although AGMARK grades are defined, market is run by industry grade as defined by the traders. Due to the fact
that the product has a very long storage life, most of the product purchased from the mandi by traders is released in
a staggered way as per the demand for coming years. The price in the market (trader to miller) is influenced by the
stock positions. Most of the traders store guar seed in their own storage structures instead of storing in accredited
warehouses. Warehousing facilities for storage of guar seed is inadequate thus needs more storage structures
to be built. The quality of the commodity is not maintained properly at the warehouses, and there should be strict
regulations for the warehouses on quality issue.
The market is constraint by lack of transparency and market information. In spite of the fact that guar has assumed
importance of stratospheric level, there is no systematic collection and dissemination of market information to the
participants.
All India Coordinated Research Project on Arid Legumes including research in Guar as a mandate is the only
research effort towards guar crop in the country. The progress in research and development have been made at
CAZARI, Agriculture Research Station (ARS), Durgapura, and CCS Haryana Agricultural University. R&D efforts have
focused to produce good quality seed of notified varieties of guar. The scientists are also developing extra early
maturing variety. The R&D efforts coupled with training to the farmers for quality seed production is paving way for
integrated lab to land transfer of technology.
The future of guar industry is for specialized applications and derivatives. It is envisaged that the industry will
move towards product differentiation to meet the specific and niche demand. For example- in food industry there is
growing preference for bio-degradable, non-polluting and organic, products. This gives ample scope for leveraging
investment, knowledge management, technology and partnerships for technology sharing and transfer.
1

9. Chapter-1: Introduction
Guar or cluster bean (Cyamopsis tetragonoloba) is believed to have originate from Africa but it’s been grown
throughout southern Asia. India and Pakistan have distinct advantage of agro-climatic conditions for the cultivation
of guar though it is also successfully grown in U.S.A., South Africa, Australia, Brazil, Zaire and Sudan. Guar is
a drought-tolerant, multi-purpose annual arid legume crop cultivated mainly during Kharif season and used for
extracting gum from seeds, animal fodder from vegetative part, and also used as green manure.
In India the major guar producing areas are Rajasthan, Gujarat and Haryana. The major producing areas are also
important processing areas of guar and its derivatives. Guar gumis exported from Kandla and Mumbai port.
History and Evolution of Guar
Guar is being grown in India since ancient time and the tender green Guar is an important source of nutrition to both
human being and animals, which is consumed as a vegetable and cattle feed, respectively. In old times, Guar was
only used as rich protein to feed cattle. It is also used as green vegetable in India. After Second World War there was
major shortage of locust bean gum which adversely affected the textile and paper industries. At that time Guar gum
was found as the most suitable substitute for scarce locust bean gum. In 1953 the extraction technology of guar gum
was commercialized in USA and after an about a decade in India.
The Guar Industry has evolved from being a
used for domestic and ruminant feed purpose to
finding used in industry. Owing to new technology,
research and development the natural gum
property of guar had varied applications from
food, pharma industry to oil Industry. The
trajectory of growth of guar industry has been
upward as can be seen from figure-1. There has
been a rapid growth in area, production and value
over a decade from 2002 to 2012.
The guar industry is poised to grow and develop
in future owing to high focus on research in
Universities and technical institutes of the world.
The keen interest of industry, government and
community will result in cohesive partnership to foster profitable global value chain of guar gum.
Properties of Guar
Guar is the source of a natural hydrocolloid, which is cold water soluble and form thick solution at low concentrations.
The guar seed consists of three parts: the seed coat (14-17%), the endosperm (35-42%), and the germ (43-47%). It is
from the endosperm that guar gum is derived, which is the prime marketable product of the plant. This sphericalshaped endosperm contains significant amounts of galactomannan gum (19 to 43% of the whole seed), which forms
a viscous gel in cold water. Like other legumes, guar is an excellent soil-building crop with respect to availability of
nitrogen. Root nodules contain nitrogen-fixing bacteria and crop residues, when ploughed under, improves yields
of succeeding crops
In India guar crop is cultivated during Kharif season, with an annual production of 5.0 to 10 Lakh tonnes. India is
the largest producer of guar and contributes 80% of total guar production in the world. Guar Gum is an important
ingredient in producing food emulsifier, food additive, food thickener and other guar gum products. India is the
largest producer of guar gum products. Its guar gum exporters, guar gum manufacturers, guar gum products
suppliers, food emulsifier exporter have reached too many countries. As of now there is a lot of demand for Indian
guar gum products, food additives, food thickener and other allied guar gum products. Guar gum is purely an export
oriented commodity with about 75-80% of total output exported from the country.
Industrially it is used in mining, petroleum drilling and textile industry. In food it is used as a thickener and as a
mean of preventing ice crystal formation in frozen desserts. Guar gum is produced from the seed and this is turned
into powder. The powder is used in a host of industries, ranging from bakery, dairy, meat, dressing and sausages,
beverages, pharmaceuticals and cosmetics, textile printing, mining, water treatment and paper industry.
3

10. Cultivation
Guar plant grows well under a wide range of soil types. It thrives best in fertile, medium textured and sandy loam
soils, with good structure and well-drained subsoil. The plant cannot stand water-logging conditions.Guar is
considered to be tolerant of both soil salinity and alkalinity.
The crop tolerates high temperatures and dry conditions, and is adapted to arid and semi-arid climate. It can be
successfully grown in areas receiving 500-700 mm of rains per year and may yield 1.5-2.5 tons per hectare. It is
sown immediately after first showers in July and harvested around November each year. The crop yield is directly
related to the monsoon. It requires a relatively long growing season of 20-25 weeks. Slight deviation in normal
rainfall during budding period results in fluctuation in production.Ideally guar requires two showers before sowing,
one spell during budding and another one at the time of blossoming.
Though guar seed production technology/ agronomic practices have been developed by Rajasthan Agricultural
University, Bikaner and Haryana Agricultural University, Hisar, and Central Arid Zone Research Institute (CAZRI)
Jodhpur, but farmers are not much aware about better technology and best agronomic practices to enhance
productivity. The extension efforts to disseminate information about technology, agronomic practices and adoption
of seeds in Hanumangarh and Sri Ganganagar districts of Rajasthan and in the states of Haryana have been
undertaken by agricultural extension agencies and guar processing industries. Private industries like Vikas WSP,
Jai Bharat Gums & Chemicals, Lotus Gums, Guar Global Limited are playing proactive role in reaching out to the
farmers and helping them in adoption of HYV seeds by farmers, promotion of guar storage, awareness about price
indicators and marketing decisions etc.
Uses of Guar and its Derivatives
Guar was traditionally used for feeding animals in Rajasthan and green pods were used for vegetable purpose. With
the development in processing technology in the country, guar seed is being used for extracting gum powder, which
has many applications including food preparations, beverages, textiles, paper industry, petroleum industry, mining,
explosives, pharmaceuticals and cosmetics.
TraditionalUses of Guar
The traditional uses of guar are as following:A.
•
Immature pods are dried, salted and preserved for future use
•
Immature pods are dried and fried like potato chips
•
Green pods are cooked like French beans
•
Mature seeds are used as an emergency pulse in time of drought
B.
Cattle Feed
•
Plants are cut and fed as green forage.
•
Beans are boiled in a large kettle and fed to cattle a high protein source.
C.
Medicinal Purposes:
•
Plants are mashed, then mixed with oil and used as a poultice on cattle boils.
•
Leaves are eaten to cure night blindness.
•
Seeds are used as a chemotherapeutic agent against smallpox.
•
Boiled guar seeds are used as poultices for the plague, enlarged livers, head swellings and on swellings
due to broken bones.
•
Seeds are used as laxative.
D.
Crop and Soil Improvement:
•
Plants are used as shade for ginger
4
Human Consumption
•
Guar commonly is used as a cover crop and green manure

11. The commercial application of Guar Gum Powder are given in Annexure 1.
Guar Gum is one of the most cost effective and functional ingredients available for formulating food products.
Soluble in cold water, Guar imparts a high viscosity and exhibits superior water-binding capacity at low usage
levels. These characteristics make it suitable for use in applications as diverse as cottage cheese, sauces, soups,
and frozen desserts. The nonionic nature of Guar makes it tolerant to extreme salt and electrolyte levels, important
criteria when selecting a thickener for nutraceutical beverages.
Guar is an all-natural ingredient, unlike other common thickeners such as modified food starch and cellulose
gum (CMC), and has been shown to provide important health benefits. Numerous studies have shown that the
consumption of Guar Gum lowers serum Low DensityLipoprotein (LDL)cholesterol and triglycerides and increases
glucose tolerance. In one of the study it was revealed that, rats fed Guar Gum as a part of their diets showed a 25%
decrease in plasma cholesterol. Guar is also high in soluble dietary fiber.
Table-1: Application-wise global consumption of guar derivatives
Type of application
Target industries
Food grade
Bakeries (Bread), Dairy (Ice cream, Sherbets, Cheese etc.), Dressing
(Sauces, Ketchup’s)
Global
consumption
20%
Beverages (Chocolate drinks), Pet Food (Thickener)
Fast Hydrated Gum
Oil drilling (as a well stimulant and fraction reducer), Mining (increased
yield, filter aid)
70%
Explosives (Gelling agent),Coal Mining (fraction reducer, binding)
Industrial grade
Textile printing (Thickening agent for dyes)
10%
Paper (increase strength and decrease porosity)
Tobacco (binding and Strengthening)
Photography (Gelling and Hardening)
Cosmetics & medicines (as binder and thickener) Slimming (Reducing
weight & laxative)
A by-product of the guar processing is guar meal (mixture of husks and germ) which is a potential source of protein.
It is used for cattle as well as poultry feeding. Toasting of guar meal improves its nutritive value. It can be used up
to 10% in poultry diet and can replace up to 100% protein supplements such as ground nut oil cakes in ruminants.
Guar is more than 6 times as effective as starch in thickening power and is used for upgrading starches. Various
derivatives of Guar Gum are available that will stiffen gels even up to a water content of 99%. Commercially important
derivatives of Guar gum are:
a)
Hydroxy and Carboxy Alkylated Guar gum
b)
Oxidised Guar gum
c)
Acetates of Guar gum
d)
Cationic derivatives of Guar gum
e)
Sulphated Guar gum
f)
Guar gum formate
g)
Guar gum acryl amide
h)
Borate cross linked Guar gum
i)
Reticulated Guar gum
j)
Carboxy methyl hydroxy propyl Guar gum
5

12. k)
Depolymerised Guar gum
Guar gum has emerged as India's top farm export overtaking traditional heavyweights rice and cotton and looks
set to power into the league of top 10 shipments from the country, thanks to the demand from the US oil and gas
industry. The guar gum exports have shot up nearly 139% on a year-on-year basis between April and January with
shipments of about $4.9billion. In the previous year, it rose 374% in January alone compared to the same month of
2011. (The Economic Times 2013).
6

13. Chapter-2: Industry Outlook
India has been a major player in guar and guar gum trade in the global market. Guar gum has a wide range of
industrial applications and the major demand is from various industries. India is the leading net exporter of guar
seeds and guar gum. In the year 2012-13 India exports guar to the tune of 21287 crores of which the share of treated
and pulverized guar gum comprises of 83% followed by 15% of refined guar split. The trade value for guar meal is to
the tune of 0.66% only in export market. Guar meal is basically used for domestic consumption.
Guar Seed Production and Supply
Guar industry exemplifies an industry which has evolved from being a source of animal feed at the household level
to being a major component for myriads of industrial application across the nation. With the better understanding of
properties of gum, properties of bonding, simplicity of process, availability of know-how and low cost of production
has made this as the most popular natural Hydrocolloid and Fast Hydrated Gum. The other macroeconomic factor
such as growth in food processing industry, textile, pharma, oil etc. has increased its demand year after year.
The determinants of guar gum availability for different applications depends on
1)
Production Statistics of major exporting countries
2)
Factors influencing the yield for example seed variety, climate, agronomic practices
3)
Supply of Guar from major exporting countries
4)
Demand from different Industries
5)
Processing capacity and utilization
6)
Nature of Market
7)
Future Expectations
Guar Production
India is the major producer of Guar Seed followed
by Pakistan and US (Fig-2). India's guar seed
production is subjected to temporal fluctuations
and it ranged between 2-18 lakh tons during
2005-06 to 2012-13. Guar is a crop of arid, and
semi-arid areas spread over the north and northwest of India and east and south-east of Pakistan.
It is grown in arid zones of Rajasthan, some parts
of Gujarat, Haryana, and Punjab.
Total global production of guar seed is estimated
to be 23.5 lakh tones for the year 2013-14,
which may fluctuate depending upon the monsoon condition in India particularly in westerndistricts of Rajasthan.
Nearly 80% of world guar seed production is contributed by India (Fig- 2). Nearly 75-80% of the Guar Gum or
other derivatives of Guar seed are being produced in India and are exported mainly to USA, China and European
countries. The value added derivatives of Guar Powder are used by the various industries in India as well as abroad.
In Pakistan, Guar seed is mainly grown in Punjab
and Sindh province with about 80% of total guar
area under irrigated conditions.
Guar Seed Production in India
India produces about 75- 80% of the total guar
produced in the world. About 80% of the seed
produced was contributed by Rajasthan during
1991-92, but the share of Rajasthan has reduced
to around 70% of total guar seed produced in the
year 2010-11 (Fig- 3).
7

14. Apart from Rajasthan, it is being grown mainly in Haryana, Gujarat and Punjab. The share of Haryana has increased
from 17% during 1991-92 to 35% of total guar production in the country. Gujarat contributes around 4% of total guar
seed produced in the country. It is also grown in some parts of Uttar Pradesh and Madhya Pradesh.
The average production of guar seed in India for the last five years was 17 Lakh tonnes and it is seen that production
fluctuates mainly due to variation in rainfall.
The year 2002-03 was marked by a low production to the tune of 2 Lakh tonnes due to severe drought (Fig 4) whereas
in 2011-12 the production rose to level of 22 Lakh tonnes due to good rainfall. The area under cultivation and the level
of production has an increasing trend for guar crop in India. It is expected that the area under cultivation of guar in
India in the year 2015 will be around 36 lakh hectares and the production will reach to around 17 to 18 lakh metric
tonnes. From the Figure-4 It is apparent that trend line of production is increasing with a faster rate compared to
trend line of area under cultivation due to increasing yield of guar in India.
Guar Seed Production in Rajasthan
Guar is a rain-fed crop cultivated mainly on marginal land and its cultivation starts with the onset of monsoon. If
monsoon is delayed, the sowing progress hampers in the major producing districts. Area, production and yield of
guar seed in Rajasthan over the years is plotted in Figure-5.
8

15. It is apparent from the figure that production and yield of guar seed fluctuates highly with rainfall as there is no
other source of moisture for the crop. The lowest production of guar seed in Rajasthan was recorded in the year
2002-03 which was 0.28 lakh tonnes, followed by the highest production at 18.5 lakh tonnes in the year 2011-12 (KR
2011-12).
Guar is being grown mainly in arid districts of western part of Rajasthan. In Rajasthan, presently Hanumangarh and
Bikaner are the leading guar producing districts. Hanumangarh contributes about 20% of total guar production and
about 9.5% of area under Guar cultivation in the state. Bikaner district accounts for about 28.5% of total production
but area under guar seed accounts for 29% of area under guar cultivation. Other major guar seed producing
districts in Rajasthan are Sri Ganganagar, Nagaur, Barmer, Churu, Jaipur, Sikar, Alwar (see Table: 2). The share of
Hanumangarh Bikaner and Barmer Districts in area under cultivation as well as production of guar has increased
over the years, while share of Sri Ganganagar, Nagaur and Churu has decreased.
Table-2: Share of Districts in Total Production and Area of Rajasthan
Districts
Share in area (TE average)
2011-12
Hanumangarh
Share in production (TE average)
2007-08
2011-12
2007-08
9.6
9.9
16.1
20.1
29.1
19.6
28.5
17.5
Sri Ganganagar
5.2
4.4
10.6
11.3
Nagaur
2.8
5.3
2.5
7
Barmer
13.8
13.8
6.0
6.2
Churu
10.6
13.6
9.1
4.9
Jaipur
1.2
2
2.0
4.5
Sikar
2.5
2.9
4.0
4
1
2
1.1
3.9
Jalore
1.4
2.3
1.5
3.8
Alwar
0.6
1
1.2
3.3
Jaisalmer
13.9
11.2
7.5
2.3
Jhunjhunu
2
2.4
2.9
1.8
Jodhpur
4.6
6.1
5.0
1.5
Bhilwara
0.2
0.9
0.2
1.3
Bikaner
Pali
Source: Agricultural Statistics, Rajasthan
Guar has been in cultivation practice in Rajasthan for a long time. The crop has witnessed a varied fluctuation in
area, production and yield over the years. The major determinant of fluctuation are intensity and distribution of
rainfall along with the variation in temperature. As seen is Table-3,the fluctuation in rainfall have affected the area,
production and yield of Guar in Rajasthan, Haryana and Bikaner.
Guar Production in Haryana
The State has made remarkable progress in terms of growth in guar seed production and productivity. The production
of guar seed in Haryana has increased from less than 1 lakh tonnes during the year 2002-03 to more than 3 lakh
tonnes in 2011-12 (Fig 6). The productivity has also increased from 445 kg/ha during 2002-03 to 1350 kg/ha in 201112, whilethe national average productivity of guar seed is 338 kg/ha only.
9

16. The high yielding and short duration varieties developed by Haryana Agricultural University, Hisar viz.; HG 365, and
HG 563 and its extensive use by farmers has improved the productivity level in the state. It is expected that with
increasing productivity and area under cultivation of guar, Haryana will help in augmenting the overall production
of guar from India.
Guar Seed Production in Pakistan:
Guar seed production in Pakistan ranges between 1.0 to 1.3 lakh tonnes and the trend in production is increasing.
Total guar seed production in Pakistan was 1.20 lakh tones during 2006-07, while it has increased up to 1.46 lakh
tones during the year 2010-11(PSB 2010-11). Guar is produced mainly in Punjab and Sindh province. Punjab province
contributes about 63% of total guar production in Pakistan followed by Sindh with the share of about 32% of total
guar production.
Effect of Rainfall on Guar Production
Guar production in Rajasthan fluctuates with fluctuations in rain to a good extent. Although the increment in area
under cultivation of guar does not vary much with rain but yield varies which results in increase in production. In
case of Rajasthan the value of correlation coefficient r is positive for area and production, rainfall and area, rainfall
and production and rainfall and yield. The value of r^2 for rainfall and yield is 41.5 which means the changes in yield
is described by changes in rainfall to the extent of 41.5% by establishing a linear relationship between rainfall and
yield.
Table-3: Relationship between Area, Production, Yield with Rainfall
Correlation between
Rajasthan
Haryana
Bikaner
Area-Production
0.63 (39.9)
0.89 (79.1)
0.91 (82.6)
0.14 (1.9)
-0.46 (21.6)
0.14 (2.0)
Rainfall-Production
0.48 (23.1)
-0.41 (16.5)
0.25 (0.25)
Rainfall-Yield
0.64 (41.5)
-0.35 (12.4)
Rainfall-Area
Note: r^2 value is in percentage
In case of Haryana production level is varying mainly due to changes in area under cultivation. Here the value of
r^2 is 79.1 which indicates a strong correlation between area and production. Variation inrainfall has a negative
correlation with area, production and yield. Data shows when there is good rainfall in Haryana farmers are likely to
shift towards other profitable rain fed crops.
Beside weather determinants the other factors like non availability of short duration and high yielding variety, nonavailability of drought resistant variety of guar seed, low seed replacement ratio also lead to volatility in production
of guar.
10

17. Supply Scenario
India contributes for more than 80% of the world guar split supply. Total world supply of Guar Split is around 4-5
lakh tonnes in a normal year.It increases upto 8 lakh tonnes as has been recorded in 2003-04.
Going to the aggressive research and development efforts in countries like U.S., Australia, Sudan etc. the supply side
is expected to be stronger and the almost monopoly of India is under challenge. The other countries of Europe have
commercialized the crop with improved technology for derivations and testing are fast emerging as competitors.

Adoption of improved seeds in High Yielding Varieties in other parts of the world

Research and Development in production and processing in countries like USA, Australia, Sudan, Zimbabwe
etc.

Improved technology for enhancing the applicability of guar gum for industrial uses in countries like France,
Germany, Spain, Belgium etc.

Increase in the volume of Guar in world market

Price stabilization due to expected strong supply side
Demand Scenario
Demand for guar is almost constant over the years but supply varies largely between years. Due to high fluctuation
in production the demand derived mainly depends on demand from industries like oil, textiles, food products, etc.
The insights into the industry revealed that there has been a migration of demand from food grade to industry grade.
The food grade gum has been substituted by synthetic gums for achieving price competitiveness in food products.
At the same time the emergence of demand of guar from the US petroleum industry and also the oil fields of Middle
East has changed the scenario.
Prior to 2005 the major demand form the industry
was for food grade guar gum. In Europe, guar
gum has EU food additive code E412. Xanthan
gum and guar gum are the most frequently used
gums in gluten-free recipes and gluten-free
products demand for the food grade guar gum
was around 50% of the total guar gum consumed.
The consumption of guar gum by Fast Hydrated
Gum (FHG) industry was limited to around 30%.
But at present the scenario has change and the
major consumer of guar gum is FHG industry
while the chunk of demand from food industry
has reduced to around 20% only.
Looking at the supply demand scenario, the total supplies for 2010-11 is reduced in fact after a great revival in
production for the year 2010-11. Overall supplies of Guar seed for the year 2010-11 is 104.7 lac bags v/s 105.7 lac bags
in 2009-10. The reason for such a miniscule drop in supplies after a revival in Guarseed production is thin carry over
stock from previous year (APEDA Report).
The seasonal demand for guar gum is at its peak during the months of Nov-March around the world. As the reason
being quite simple the majority of the drilling activities of crude oils take place during these months.
Level of Processing
The year 2005-06 became a remarkable year for the development of Guar Industry. The demand for Fast Hydrated
Gum for fracking purpose escalated the market to a new horizon. Prior to this shift in demand there were very few
units which were processing guar. In the state of Rajasthan there were around 50-60 units only which were engaged
in guar processing. High demand of FHG resulted in price rise due to which there was quick establishment of around
11

18. 500 processing units in Rajasthan. There are more than 600 Guar gum manufacturing units in India with processing
capacity of around 7-8 lakh tonnes annually of which only around 4.5-5 lakh tonnes capacity is utilized. One of
the major reason for low level of capacity utilization is lack of demand from the industries. In fact the supply has
exceeded the demand by entry of large number of new players as the industry appears lucrative.
Nature of Market
Market of the guar seed has witnessed a fluctuating market life cycle. The period of stable demand and supply
followed by a record peak in price and shortage of supply have made guar market a very volatile during recent years.
The physical market for guar seed trading remains with Agricultural Produce Market Committees (APMCs) of the
states. Mandi fee for Guar in Rajasthan is chargeable at the rate of 1.60%, while in Haryana it is 1.0%, in Gujarat0.50% and in Punjab there is no mandi fee chargeable on Guar. These markets have peak arrivals of guar seed in
the month of November and December. The major channel for selling the guar seed is through commission agents
who charges a prescribed brokerage of 2% as per APMC Act. Although AGMARK grades are defined, market is run
by industry grade as defined by the traders. Due to the fact that the product has a very long storage life, most of the
product purchased from the mandi by traders is released in a staggered way as per the demand for coming years.
The price in the market (trader to miller) is influenced by the stock positions. Most of the traders store guar seed in
their own storage structures instead of storing in accredited warehouses. Warehousing facilities for storage of guar
seed is inadequate thus needs more storage structures to be built. The quality of the commodity is not maintained
properly at the warehouses, and there should be strict regulations for the warehouses on quality issue. Also the
benefit of pledge financing scheme is not reaching farmers and other stakeholders.
For packaging of splits processors use plastic bags and each bag contains up to 50 kg of splits. Guar powder is
packed in paper bags and each bag contains 25kg of powder. Then these packets are being filled in the containers
and each container consists of 800 packets. These processed products are being stored at the trader/ processor
level by their own arrangements. The disclosure of current stocks and carryover stock in this situation is quite
difficult and hence leads to speculation. It has been seen that at commodity exchanges the future trade of guar in
year 2005-06 was to the tune of Rs. 299305 which was 242 times more than the actual value of Guar produced in the
country. Although market forces determines the price in long run but the guar industry has witnessed high price
fluctuations in the recent years.
The market is constraint by lack of transparency and market information. In spite of the fact that guar has assumed
importance of stratospheric level, there is no systematic collection and dissemination of market information to the
participants. The information requirement of industry to make a better decision are1)
2)
3)
4)
5)
6)
Area under cultivation and estimated production for a season
Climate data for industry to estimate the supply from major production centers
Estimated requirement of major importing countries and expected price in different markets
Quality specifications for different countries
Changes in international trade policies
Different application and specific grades accordingly
Farmers are aware of the prices prevailing in the market and refer to exchange prices while making a marketing
decision. A consistent and reliable market information will help participants to make better decision.
The systematic collection of market information is required to be backed up by consistent efforts to disseminate
market information to farmers and industry. The extension and advisory service also needs to be geared up to
enable farmers, traders and processors to be able to make analyzed decision for present and future. Presently
there is no dedicated organization performing task of collection and dissemination of market information to the
stakeholders in public domain. However since the guar industry has largely driven by private players, they have
their own individual mechanism of survey and collection of information of all kinds. Such discrete efforts needs to be
consolidated to from a reliable mechanism of market information and advisor services. There is need of identifying
national level institute as a nodal agency to facilitate the collection and dissemination of market information. As
the importance of guar for the state of Rajasthan and country is well understood, National Institute of Agricultural
Marketing is focusing on guar industry.
12

19. Value addition and processing of Guar seed are the most important component of the market. There is lack of
technology and Research & Development of products for specific guar gumused by the industries. Skilled man
power in respect of growing food security concerns, still more than 40% export is contributed by raw material i.e.,
guar gum refined splits. Processing industry is fragmented and most of the units are small scale units. There is a
greater need for consolidation to achieve economies of scale and a stable market for guar.
Future of Guar Market
The market of guar has witnessed a shift which was quite unexpected for the participants in the industry. The mean
price of guar from 2007 to 2011 was moving around Rs. 2000/qt./qt. to Rs. 2100. But the high price fluctuations in
the year 2012 the mean price of entire period (2007-2013) shifted to a new high at around Rs. 3600/qt. at Jaipur
market. Mean price of last two year was around Rs. 7600/qt. In 2013 the price is moving towards stability with minor
fluctuations.
In the year 2012-13, the export of guar split and gum from India to the world was around 3.3 lakh tonnes. It is
estimated that the 20% of output of guar is being consumed within the country. The estimated total output of guar
split and gum in the year 2012-13 was around 4 lakh tonnes. The compounded Annual Growth Rate of guar gum
industry is estimated at 17.6%. Even if the industry grows with 15% CAGR, the expected size of the market in 2015
will be around 5.3 lakh tonnes.
The production of guar at commercial level has been started in many of the African countries which is expected to
overcome the trouble caused to the industry due to fluctuations in the production in India. After the emergence of
usage of guar in oil drilling industry, there had not been any new application emerged so far which indicates that
the demand will be consistent without much fluctuations.
Though India accounts for 75-80% of the total guar produced in the world (60-70% is cultivated in Rajasthan) lack of
technology on value addition diminishes the profits that can be earned from the crop. Lack of awareness among the
stakeholders regarding the commercial value of the crop is resulting in under-exploitation of the crop for export.
Meager efforts are made for stabilization of guar seed productivity in the country, since guar is not considered widely
as a commercial crop. Countries like USA and Australia are making concerted efforts to grow guar seed extensively
and thus production is showing increasing trend in those countries. This may lead to loss of international market
for Indian guar gum products.
The future of guar industry is for specialized applications and derivatives. It is envisaged that the industry will
move towards product differentiation to meet the specific and niche demand. For example- in food industry there is
growing preference for bio-degradable, non-polluting and organic, products. This gives ample scope for leveraging
investment, knowledge management, technology and partnerships for technology sharing and transfer.
13

21. Chapter-3: Marketing and Supply Chain of Guar
Guar seed arrives in the markets in the month of November- December mainly. The part of produce (5-10%) is
retained by farmers for seed, and animal feed purpose. The rest of the produce is sold in the market. The guar seed
is mainly traded in Agriculture Produce Market Committees (APMC) of Rajasthan, Haryana, Guajarat and Punjab.
The major markets are shown in Table 4.
Table-4: Major APMC trading in Guar Seed
State
Mandi
Rajasthan
Jodhpur, Bikaner, Sriganganagar, Hanumangarh, Churu, Sikar,
Jaipur, Jaisalmer, Barmer, Nagaur, Nokha, Renwal
Haryana
Adampur, Fatehabad, Hisar, Sirsa, Bhiwani, Ellanabad
Gujarat
Kachch, Banaskanta, Sabarkanta, Mehsana, Patan, Ahemdabad
Punjab
Bhatinda
The peak arrivals in the APMC are from October to December. The arrivals in market show declining trend from
January to May.
Table-5: Peak and lean period of Guar Marketing
Jun
Jul
Sowing
Aug
Sept
Crop growth
Oct
Nov
Peak arrivals
Dec
Jan
Feb
Mar
Apr
May
Lean arrivals
According to Industry source there are more than 150 guar processing units in India, and the total installed capacity
is more than 6 lakh tonnes per annum. There are two types of guar seed processing industries- processing of guar
seed to guar powder and guar powder to guar gum. All the split units have indigenous plant and machinery and are
mainly located in Jodhpur, Sri Ganaganagar and Bikaner districts of Rajasthan. The pulverized gum is largely sold
as a commodity, and about 20% of the exports are still in the form of refined splits.
In regard to guar gum, although chemical analysis of different varieties is available and the processors could
exercise preference for varieties with higher gum contents, but it is constrained by technical knowledge, machinery
and resources as felt by industry to leverage the advantages of global market.
Guar Supply Chain
Guar seed is used for animal feed, extracting guar split, powder and guar gum. There are number of guar processing
units in Jodhpur, Bikaner, Sri Ganganagar, Alwar and Jaipur of Rajasthan state, Bhiwani and Sirsa of Haryana state
and Deesa, and Ahemdabad of Gujarat state. These units can be grouped into guar split manufacturers, and guar
gum processors.
15

22. Fig-9:Value Chain of Guar India
Animal Feed
Farmer
Producing Guar
Commission
Agents in Mandi
Guar Split
making Units
Trader/
Wholesaler
Guar Gum Treating
and Pulverizing Units
Export
Guar Meal
Trader/
Wholesaler
Animal
Feed Company
Retailer
Animal Feed
Farmers/ Dairy
Figure-9 shows the supply chain of guar split, guar gum and guar meal. As can be seen the stakeholders of Guar
have integration of supplies. Split manufacturers procure guar seed either from village traders or from farmers in
the mandi through commission agents (Fig-9). Another chain which exists in the market is direct sell by farmers to
traders/ stockist through commission agents, and traders sell it to split manufacturers or guar gum processors.
The commission agents take a brokerage of 2% from the buyers as per the act. Processors after processing
guar seed into split either export directly or through exporters. Processors also sells guar split to the local gum
processors. Similarly gum processors source guar seed either from village traders, farmers through commission
agents, stockist/ traders, or they procure split from split manufacturers. After processing of guar seed/ split into
different industry specific guar gum products, they export it and/ or sale to the domestic industries for further use.
16

23. Industry Standards for Guar Products
The parameters for buying guar seed and split vary according to its usage and depends mainly on colour, shape and
size. The industrial specifications for Guar Split and guar powder are shown in table below.
Table-6: Specifications for guar splits (Supreme Gums Pvt. Ltd., Jaipur)
Attributes
Specifications
Gum Content
80-85%
Dehusked Splits
90% (Minimum)
Protein
5% (Maximum)
Ether Extract
0.6% (Maximum)
Ash
1% (Maximum)
Moisture
10% Maximum
Crude Fibre
1.5% Maximum
Degree of refining
Double Refined
Guar Split
Dehusking requires sophisticated processing techniques as the price of the product depends on the splits meeting
specifications laid down by buyers for moisture content, density, protein content, impurities and particle size.
Guar Gum
Guar gum can be further differentiated by specialized processing as highly refined guar gum is produced for the
food ingredient industry, being used as a stiffener in soft ice cream, a stabilizer for cheeses, instant puddings and
whipped cream substitutes as well as a meat binder. Low grade guar gum has applications in textile and paper
manufacturing industry, oil well drilling industry, ore flotation and a number of other industrial applications.
Specifications vary as per buyers’ requirements but mesh (particle) size, viscosity, pH and microbiological standard
are some of the important attributes.
USA is the largest consumer of Guar gum with an annual consumption of about 2.2 lakh metric tonnes which
constitutes about 25% of world trade.
Processing of Guar Seed
Guar Seed
The guar seed consists of three parts: the seed coat (14-17%), the endosperm (35-42%), and the germ (43-47%).
The constituents of Guar seed are as shown in Table-7. It is from the endosperm that guar gum is derived, which
is the prime marketable product of the plant. The pods are sun dried, manually separated from the seeds and the
seeds are supplied to the industry for processing. Guar By-products, viz, Churi and Korma are used for Cattle feed.
Table-7: Constituents of Guar Seed
Part of Seed
Protein %
Ether extract %
Ash %
Moisture %
Fibers %
Types of Sugar
Hull (14-17%)
5
0.3
4
10
36
D-glucose
Endosperm
(35-42%)
5
0.6
0.6
10
1.5
Galactomannon
Germ
(43-47%)
55.3
5.2
4.6
10
18
Glucose
Guar Splits
When the polished endosperm are removed and separated from the fine layer of fibrous material a husk and refined
Guar splits are obtained.
17

24. Guar Powder
These refined splits are then pulverized and treated and processed using tailor made technology for specialty grade
products for usage in industries specified. After pulverization, sieving is done to get the required mesh size i.e.
fine, coarse, etc. and is converted into powder by a variety of means and processing techniques depending upon the
desired end product.The Guar gum is mechanically extracted by roasting, differential attrition, sieving and polishing
of Guar seeds. The sieved gum is then passed through the blenders to make it homogenous and later it is packed
for marketing. The gum is refined to make yellowish white powder as per the quality specifications required by user
industries and grades specified.
The specification for guar seed as per AGMARK standard are also prevalent for trade. The AGMARK standards and
specifications are in Annexure-II.
The modern high technology units employ hammer /or Jet mills and other equipment’s using the latest techniques
to produce powders with higher fineness, finer colloid formation, high water absorption and consistency. Especially
gum powder is produced as per the requirement of Pharmaceuticals, Cosmetics and Food processing industries.
Fig-10: Processes in extraction of Gum
Feedstock of guar seed
Screened to remove extraneous material
Coarse milling, seeds broken in two halves carrying a part of husk and germ
Broken half seeds roasted in oil fired Rotary furnace, loosening of husk results
De-husking, screening or sifting
(removed crude endosperm)
Husk and germ
Second screening and policing, about 98% impurities
endosperm results (Purified guar split)
Residual removed
Tempered with 50% demonized water, and flaked with rollers.
Flaked guar split with disrupted cellular structure results
Hammer or ultra-fine milling, guar gum powder
Sifting, screening and cycloning, commercial guar gum powder of
different mesh sizes is obtained
Lab Testing
Packing and Storing
The Guar Gum: Refine Guar Splits are the sole raw material for manufacturing Guar Gum Powder for pharmaceutical
and Food grade material. The properties of Guar Powder, which make it useful in various applications, are •
•
•
•
•
•
•
18
Easy solubility in cold and hot water
Film forming property
Resistance to oils, greases and solvent
Better thickening agent
Water binding capacity
High viscosity
Functioning at low temperatures

25. Chapter-4: Price Movement of Guar
Factors Influencing Guar Price:
1.
Rainfall during sowing and critical stages of growth
2.
Area sown under the crop in major states like Rajasthan, Haryana, Punjab, Gujarat, etc.
3.
Pattern of arrivals on a regular basis in markets like Jodhpur, Bikaner, Sriganganagar,
Adampur, Bhiwani, Siwani etc.
4.
Demand from millers or processors and export demand.
Introduction
Guar seed has shelf life of more than 3 years without losing out on any of its properties or qualities. It requires the
barest minimum maintenance and handling environment. Therefore, traders or stockiest store this even for more
than 6-7 years. Guar crop is mainly grown under rain-fed conditions therefore prices of guar seed as well as its
derivatives very much depend on the monsoon condition and its likely production.
The prices are observed to be highly volatile during monsoon months. There is a good correlation between rainfall
and production in Rajasthan as the guar crop is rainfed. The effect of rainfall on production is seen less in case of
Haryana where Guar is a irrigated crop. The other factors like pattern of arrival, demand from millers and export
also cause volatile price movement.
Fluctuation in Spot prices
The spot price of guar seed for the last 7 years i.e., from 2007 to 2013 reflects high volatility of prices. The Spot
price at Jaipur market and Sri Ganganagar are analyzed.The price fluctuate highly during monsoon period i.e. July
to October. Guar seed traded at Jaipur market between Rs 4000/qt. during Oct, 2012 to Rs 15000/qt. in the month
of December, 2012. In 2013 the highest price at Jaipur was recorded in the month of January at Rs. 14400/qt. and
lowest recorded was Rs. 4200/qt. in August. Highest fluctuation in prices of guar seed has been observed in the year
2012. During the year 2012, prices at Sri Ganganagar market ranged from Rs. 7752/qt. to Rs. 28556.2/qt.
Annual volatility (measured as Coefficient of Variation) in mandi prices of guar seed at different markets has been
worked out and presented in Table-8.
Table-8: Volatility in Guar Seed Prices (C.V. in %)
Rajasthan
Haryana
Year
Sri
Ganganagar
Jaipur
Hanumangarh
Adampur
Fatehabad
Hissar
2007
5.5
6.0
5.9
6.0
6.7
6.9
2008
7.2
8.5
7.8
8.0
7.1
9.6
2009
20.9
19.3
22.0
21.1
21.5
20.2
2010
7.8
8.4
8.0
6.7
8.3
14.7
2011
29.4
50.6
36.1
28.1
29.5
25.4
2012
46.1
38.5
33.8
47.7
56.3
56.7
2013
29.2
39.5
28.3
24.5
23.5
56.6
Source: AGMARKNET
Results of the analysis reflect that there was high volatility in prices of guar seed at Hissar (56.7% and 56.6% in 2012
and 2013 respectively), Fatehabad (56.3% in 2012), Jaipur (50.6% in 2011), Adampur (47.7% in 2012), Sri Ganganagar
(46.1% in 2012) and Hanumangarh (36.1% in 20011) markets, as indicated by the higher magnitude of CV in the
respective markets.
The price of Guar seed ranged from Rs 4000/- per quintal to Rs 11000/- quintal at Jaipur market in 2013. While for
the same period the price range at Sri Ganganagar was from Rs. 7752/- per quintal to Rs. 28556/- per quintal. In the
year 2013 the ranges of price at Jaipur and Sri Ganganagar market were Rs. 4361/- per quintal to Rs. 11482/- per
quintal and Rs. 5004/- per quintal to Rs. 11743/- per quintal respectively.
19

26. The high price fluctuation in guar is mainly on account of higher fluctuation in area and production of guar seed
depending on the spread and level of monsoon rainfall in the producing centers and the export demand of guar gum
from the importing countries.
Futures Trade for minimizing Price risk
Futures trade in Guar seed started in the month of April, 2004 on NCDEX platform with the objective of price discovery
and price risk management. Futures contracts for Guar Gum are traded mainlyon NCDEX platform. Futures trade
in agri-commodities provides good hedging platform for the farmers, processors, exporters, etc in the value chain.
The total value of output of guar seed is estimated at Rs 1,238 crore during 2005-06 (June – July), which has enjoyed
a futures turnover of Rs 299,305 crore (242 times of guar output) during May 2005- March 2006.
Total value of guar seed and guar gum traded on NCDEX has continuously increased in the initial years and reached
to the peak during 2006-08. In 2006 Guar seed and Guar Gum together contributed to 45% of total agricultural
commodity traded at NCDEX and 37% of overall commodity trade of the exchange. The trend was continuing till 2008
as 39% of agricultural commodity trade was from Guar only. From the year 2009 the share of guar in agricultural
commodity trade and overall commodity trade of NCDEX started declining. In the year 2010 the share of guar in total
agricultural commodity trade of NCDEX was only 13%. Up to November 2013, the share of guar in total commodity
trade of NCDEX is only around 9%.
Table-9: Volume of trade on NCDEX
Guarseed
(A)
Guargum
(B)
Total
A+B
% of Agri trade
at NCDEX
% of Total Trade
at NCDEX
Volume
47154
2189
91314
13
11
Value
80526
10787
Volume
188721
7631
355099
6
5
Value
320154
34944
Volume
140957
3062
297534
45
37
Value
282287
15247
Volume
65042
1112
125814
44
38
Value
120669
5145
Volume
60372
839
115453
39
35
Value
111671
3782
Volume
90298
4271
220252
15
14
Value
199124
21128
Volume
109862
6690
290626
13
11
Value
255801
34825
Volume
89985
8590
453976
20
16
Value
352030
101946
Volume
3301
387
49296
20
19
Value
35311
13985
Year
2004
2005
2006
2007
2008
2009
2010
2011
2012
Note: Volume in 000’s Metric Tonnes and Value in Rs. Crores
The total quantity traded on commodity bourses was 88 times of total quantity of guar seed produced in the year
2004-05, 179 times in the year 2005-06, 146 times in the year 2006-07 and 53 times in the year 2007-08.
20

27. Table-10: High –Low difference in Guar seed prices in India(Rs/Qt)
Year
High
Low
Average
Difference (H-L)
2004
1881.65
1002.8
1399.9
878.9
2005
2040.40
1358.3
1567.1
682.1
2006
2336.35
1560.6
1824.2
775.8
2007
1963.70
1744.1
1848.6
219.6
The high-low price difference after introduction of commodity futures in guar seed indicates that the spot price
volatility of guar seed has decreased (Table-10).
Price Fluctuations due to Area, Production and Rainfall
The price of guar depends upon rainfall and area under cultivation of guar. The rainfall has more impact on price
than production has. While with increase in area under cultivation the price decreases to a little extent.
From the Figure-11 it is clear that the rainfall and area under cultivation is moving in same direction while with
increase in area under cultivation price is decreasing.
Table-11: Impact on Spot Price of Guar due to variation in factors (in short run)
r 2 Between
Rainfall
Area
Production
Price
51 (0.72)
25 (-0.50)
14 (0.37)
Here in case of correlation between price and rainfall, result obtained shows a positive relation. Here r^2 for
between price and rainfall is 51, which means that 51% of the total variation in price can be explained by the linear
relationship between rainfall and price. A good rainfall results in good seed quality which fetches better prices in
market. The relationship between price and area has a negative correlation coefficient and the value of r^2 is 25
which means that 25% of the fluctuations in price can be explained by the linear relationship between price and
area. The correlation coefficient for between price and production has a positive but very week association as 14%
of the fluctuations in price can be explained by the linear relationship between price and production. Hence volatility
in the price is a factor of climate and non-climatic parameters.
21

29. Chapter-5: Guar Trade Scenario
Guar accounts for 18% of total farm exports which is at the value of Rs. 21287crores in 2012-13. This makes it as a
second largest exported commodity after Basmati rice. The volume and value of the trade in 2012-13 are as stated
below:
Table-12: Volume and Value of Guar Export in 2012-13
Product: Guar
2012-13
Value
(in Rs. Crores)
Percentage
growth on
previous year
Percentage
share in
2012-13
HsCode
Product
Qty
(in Tonnes)
13023230
Guargum treated and pulverised
2,63,245.45
17,756.19
22.59
83.41
13023220
Guargum refined split
70,515.23
3,390.54
76.29
15.93
13023210
Guar Meal
74,814.14
140.28
20.08
0.66
Total
4,08,574
21,287
28.83
100
Source: DGCI & S
There has been 76.29% growth in the value of guar refined split traded in year 2012-13. The value of trade of treated
guar gum has also recorded a growth of 22.59% over a year. India continues to be a major exporter of refined split.
Although India is the biggest exporter of guar seed to US, the countries like Spain and Italy are continuously increasing
their share in US market. Due to high demand of guar in world market and also the increasing price, Research and
Development activities in these countries are aiming to obtain maximum benefit of the existing opportunities.
The main reason behind the near monopoly of India is due to production constraints in Italy, Spain, and UK etc.
Fluctuation in production of Guar in India creates opportunity for many countries to capture the market share in
world trade of Guar by undertaking research and development activities in production and processing sectors. Such
efforts are already on progress in Australia, some states of USA, Sudan and South Africa etc.
The derivatives of Guar seed like guar gum and guar meal are being exported from India. Nearly 80 per cent of
Guarsplit and guargumpowder produced in the country is being exported which fetches good amount of foreign
exchange. The major markets are United States of America, China, Germany, France, Mexico, Argentina, Japan,
23

30. Indonesia, etc.
Table-13: Major Exporting countries of Mucilages and Thickeners (HS code 13032)
2010
Sr
No.
Country
1
2011
Value
%age
share
Sr
No.
Country
Value
%age
share
India
628
60.21
1
India
1,218.00
73.07
2
Spain
86
8.25
2
Usa
92
5.52
3
USA
66
6.33
3
Spain
75
4.50
4
Italy
47
4.51
4
Pakistan
73
4.38
5
Pakistan
39
3.74
5
Italy
40
2.40
6
Germany
30
2.88
6
Germany
28
1.68
7
France
25
2.40
7
France
22
1.32
8
Morocco
20
1.92
8
China
19
1.14
9
Denmark
20
1.92
9
Denmark
17
1.02
10
Netherlands
15
1.44
10
Switzerland
16
0.96
11
Switzerland
14
1.34
11
Morocco
15
0.90
12
China
13
1.25
12
Netherlands
15
0.90
13
United Kingdom
10
0.96
13
United Kingdom
10
0.60
14
Portugal
6
0.58
14
Belgium
6
0.36
15
Belgium
5
0.48
15
Turkey
5
0.30
16
Japan
3
0.29
16
Philippines
3
0.18
17
Philippines
3
0.29
17
Russian Federation
2
0.12
18
United Arab Emirates
3
0.29
18
Sweden
2
0.12
19
Turkey
3
0.29
19
Japan
2
0.12
20
Austria
2
0.19
20
Portugal
2
0.12
21
Sweden
1
0.10
21
Poland
1
0.06
22
Norway
1
0.10
22
Australia
1
0.06
23
Australia
1
0.10
23
Austria
1
0.06
24
Czech Rep.
1
0.10
24
United Arab Emirates
1
0.06
25
Indonesia
1
0.10
25
Trinidad and Tobago
1
0.06
Total
1,043.00
100
Page Total
1,667.00
100
Source: - APEDA
Guar gum is classified under Mucilages and Thickeners group (HS code 13032) in harmonized system of classification
in international trade. Mucilages and Thickeners includes derivatives of Locust bean, Locust bean seeds and Guar
Seeds. India is the largest exporter of guar gum and mucilages with 73% share of world mucilages and thickeners
trade, followed by USA (5.5%), Spain (4.4%), Pakistan (4.3%), Italy (2.3%) and Germany (1%) (Table-13). Countries
like USA, Spain, Italy, Germany, etc. imports guar refined split from India and process it into industry specific guar
gum products and re-export it.
Major importing countries of guar gum or mucilages and thickeners group is USA with about 62% of total world
24

31. mucilages and Thickeners import followed by Germany (6%), Canada (4%), China(2.8%), Italy (2.5%), etc. (Table-14).
Table-14: Major importing countries of Mucilages and Thickeners
2010
S.
No.
Country
1
USA
2
2011
Value
Share
(%)
S.
No.
Country
Value
Share
(%)
547
55.70
1
USA
1,003
62.88
Germany
71
7.23
2
Germany
101
6.33
3
United Kingdom
33
3.36
3
Canada
65
4.08
4
Japan
31
3.16
4
China
46
2.88
5
France
30
3.05
5
Italy
40
2.51
6
China
29
2.95
6
Japan
39
2.45
7
Canada
28
2.85
7
Denmark
30
1.88
8
Russian Federation
28
2.85
8
France
28
1.76
9
Denmark
27
2.75
9
Russian Federation
27
1.69
10
Italy
24
2.44
10
United Kingdom
22
1.38
11
Rep. of Korea
16
1.63
11
Mexico
21
1.32
12
Mexico
13
1.32
12
Netherlands
19
1.19
13
Australia
12
1.22
13
Australia
18
1.13
14
Netherlands
12
1.22
14
Belgium
16
1.00
15
Belgium
11
1.12
15
Brazil
15
0.94
16
South Africa
10
1.02
16
South Africa
14
0.88
17
Brazil
10
1.02
17
Argentina
12
0.75
18
Spain
8
0.81
18
Indonesia
11
0.69
19
Thailand
8
0.81
19
Thailand
11
0.69
20
Poland
8
0.81
20
Spain
11
0.69
21
Switzerland
6
0.61
21
Switzerland
10
0.63
22
Argentina
6
0.61
22
Poland
10
0.63
23
Austria
5
0.51
23
Austria
10
0.63
24
Turkey
5
0.51
24
Rep. of Korea
9
0.56
25
Malaysia
4
0.41
25
Malaysia
7
0.44
Total
982
100
Page Total
1,595.00
100.00
Source:- APEDA website.
25

32. Table-15: Export of Guar gum from India to USA and World
GUAR GUM EXPORT from India
YEAR
To USA
To World
Share of USA
in total export
Valueof Guar Gum
from India in (%)
Quantity
(ooo’MT)
Value
(Crores)
Quantity
(000’MT)
Value
(Crores)
2002-03
49
227
112
486
47
2003-04
45
196
121
508
39
2004-05
54
286
131
689
41
2005-06
75
466
187
1049
44
2006-07
67
441
189
1126
39
2007-08
82
484
211
1126
43
2008-09
97
623
259
1339
47
2009-10
72
468
218
1133
41
2010-11
215
1,777
442
2939
60
2011-12
434
12,446
707
16524
75
2012-13
245
17,282
409
21287
81
Source: APEDA
Exports of guar gumis continuously increasing with the annual compound growth rate of 17.6% in quantity terms
and 40.6% in value realized. The major items of export among guar products are Guar Gum Treated and Pulverized
followed by Guar gum Refined Split and Guar meal. Total quantity of guar gum exported from India was about 409
thousand MTvalued at Rs. 21287 crores during 2012-13. Export of guar gum from India to USA has also increased in
both quantity as well as value terms. The compounded annual growth rate (CAGR) of export of guar gum form India
in quantity terms has been recorded at 21.6% from 2002-03 to 2012-13 and the CAGR for value of guar gum exported
to USA for the same period is 49.32%.
Exports of Guar Derivatives from India
Nearly 75-80% of the Guar Gum or other derivatives of Guar seed are being produced in India and are exported
mainly to USA and European countries. The value added derivatives of Guar seed are used by the various industries
in India as well as abroad. Pakistan, Sudan and parts of USA are the other major Guar growing countries which
produces nearly 20% of world guar seed production. The derivatives of Guar seed like guar refined splits, guar gum
powder and guar meal are being exported from India. Nearly 80 per cent of Guar gum and split produced in the
country is being exported which fetches good amount of foreign exchange.
Table-16: Export of Guar Derivatives from India.
HsCode
Product
2010-11
Qty
13023230 Guargum
treated &
pulverised
2011-12
Value
Qty
3,17,171
2,366 5,24,751
13023220 Guargum
refined split
83,011
508 1,02,424
13023210
Guar Meal
41,425
Total
Source: DGFT
26
4,41,607
65
80,152
2,939 7,07,326
2012-13
Value
Qty
14,484 2,63,245
Value
Growth
Percentage
percentage
share
over an
in 2012-13
year
17,756
22.59
83.41
1,923
70,515
3,391
76.29
15.93
117
74,814
140
20.08
0.66
16,524 4,08,575
21,287
28.83
100
Note: Quantity in Tonnes and value in Rs. Crores

33. The export composition of guar derivatives shows that export of refined guar splits was 15.93% and guar gum treated
and pulverized was 83.41% in the year 2012-13 (Table-16). The proportion of refined guar split, an intermediate
product, has dropped to 30% of total guar derivatives export from the country, but still a sizeable quantity of exports
is contributed by this raw material used for processing into different industry specific guar gum products. The major
share of the guar processed in India is exported either in form of semi processed product i.e. refined splits or in
form of guar powder.
Per unit value realization from export of split and gum pulverized indicates that export of guar gum treated and
pulverized fetches about 25% - 30% higher income to the country compared to export of Guar refined splits.
Considering 5-10% increase in cost (as discussed with processors) of processing splits to gum powder it is viewed
that 15-20% net income can be achieved.
India is the leading exporter of guar gum. The major importing countries of Indian guar products are E.U, United
States of America, China, United Kingdom, South Africa, and Japan. In 2012-13, the top importing countries were
U.S.A. with 2,44,829.0 MT China with 32,268 MT, Germany with 12,085 MT, Canada with 5467.0 MT, Russia with
5,389 MT, Australia with 3,959 MT, Italy with 12,651 MT and Netherlands with 3,644 MT. The country exported about
4,08,574 MT of guar gum during the year 2012-13 as compared to 7,07,326.43 MT in 2011-12.
Export of Guar Refined Split to Major Countries from India
Guar refined split is manufactured from guar seed and is an intermediate product used for processing and producing
different industry specific guar gum products. USA continues to be the major importer of guar refined split, followed
by china, Switzerland, Netherlands, Belgium, Pakistan, South Africa, etc. During 2006-07, China emerged as largest
importer of guar refined split, according to trade sources China imposes import duty to the tune of 15% on import
of Guar gum and import of guar refined split is free. Thus, China is encouraging import of intermediate product,
process it into different industry specific guar gum products and re-export it. Similarly all other countries who are
importing guar refined split in bulk from India process it and re-export the finished product.
The export of refined guar split has increased mainly to USA and China. These are the countries acquiring strength
in the processing of guar split to the value added guar gum and other industry specific products. China and USA now
started exporting value added products to other countries. The main demand of guar seed originates from the US
petroleum industry and also the oil fields of Middle East. The major markets are United States of America, China,
Germany, United Kingdom, Spain, UAE, Belgium, Austria, etc.
Export of Guar Gum Treated and Pulverized to Major Countries
USA continues to be the largest importer of Guar gum from India with an annual import of more than 2,44,829 MT
presently which represents 60% of total guar gum exports of India. China & Germany are the other major importers
of guar gum from India with more than 32,268 MT and 12,085 MT of annual imports respectively from India, which
accounts for 7.8% and 2.9% of total guar gum export from India. Other major importers of guar gum are Italy, South
Africa, Russia, Australia, Netherlands, Japan, Brazil, Belgium and Canada. Presently India exports guar gum to
more than 90 countries.
Guar in EXIM Policy
The Harmonized System (HS) classification with code 130232 is mucilages and thickeners derived from locust
bean seeds or guar seeds. This includes guar meal (which is a byproduct of guar processing industry mainly used
for animal feed industry, is in no any case have thickening and binding properties), guar gum refined split (an
intermediated product derived from guar seed and used for processing into different industry specific guar gum
products, is a raw material for guar gum industry for further processing), and guar gum treated and pulverized (the
final product of guar processing).
27

34. Table-17: Customs duty on Guar and its derivatives
Exim Code Item Description
07133910
Guar Seeds (From 01-03-2013)
Customs Duty (%)
Customs Basic Duty:
30
Addl Duty(CVD):
0
Spl Addl Duty(Spl.CVD):
0
Excise Cess
Customs Cess
130232
Mucilages and thickeners, whether or not modified, derived from locust beans,
locust bean seeds or guar seeds:
13023210
- Guar meal (From 01-03-2013)
3
Customs Basic Duty:
30
Addl Duty(CVD):
12
Spl Addl Duty(Spl.CVD):
4
Excise Cess
Customs Cess
30
12
Spl Addl Duty(Spl.CVD):
- Guargum treated and pulverized (From 01-03-2013)
Customs Basic Duty:
Addl Duty(CVD):
13023230
3
4
Excise Cess
Customs Cess
30
12
Spl Addl Duty(Spl.CVD):
- Guargum treated and pulverized (From 01-03-2013)
Customs Basic Duty:
Addl Duty(CVD):
13023230
3
4
Excise Cess
Customs Cess
3
Source: Exim Policy, Government of India
Benefits under VKGUY
Exports of agricultural produce, minor forest produce and village and cottage industry products would be awarded
duty free scrip @ 5% of the FOB value of exports under the Vishesh Krishi and Gram Udyog Yojana (VKGUY). In order
to promote indigenous sourcing, a built-in incentive has been introduced under the VKGUY for exporters utilizing
domestic raw materials for export production. Earlier the overall subsidy used to be 6% composed of 5% credit
in VKGUY and 1% duty drawback for export oriented unit (EOU). Out of this 5% of subsidy under VKGUY has been
revoked for guar gum and guar meal and 1% drawback is still available. Guar gum (Split and Powder) has been
added in the list of focus product scheme (FPS) where 2% benefit is available on FOB value of exports. However guar
meal is not included in this list.
28

35. Table-18: List of items covered under Minor Forest Produce
Product
Code
ITC HS
Code
Description
130232
Date of export from which
benefits will be admissible
Mucilages and thickeners, whether or not modified, derived
from locust beans, locust bean seeds or guar seeds:
8.44
13023210 Guar meal
01.04.2004
8.45
13023220 Guar-gum refined split
01.04.2004
8.46
13023230 Guar-gum treated and pulverized
01.04.2004
Guar refined split is a raw material for processing into guar gum powder, and through this VKGUY scheme the
export incentive is also going for export of an intermediate product or raw material. This matter should be looked
into and export of raw material should not be incentivized.
29

37. Chapter-6: Research and Development Efforts in Guar
Production Research
All India Coordinated Research Project on Arid Legumes including research in Guar as a mandate is the only
research effort towards guar crop in the country. The progress in research and development have been made at
CAZARI, Agriculture Research Station (ARS), Durgapura, and CCS Haryana Agricultural University. R&D efforts have
focused to produce good quality seed of notified varieties of guar. The scientists are also developing extra early
maturing variety. The R&D efforts coupled with training to the farmers for quality seed production is paving way for
integrated lab to land transfer of technology.
ARS Durgapura under Rajasthan Agricultural University, Bikaner has developed eleven varieties of Guar seed with
the main thrust on research in the areas of:
1.
Breeding genotypes with early maturity, in built multi-stress tolerance towards drought, heat, salt and field
resistance against important diseases and pests.
2.
Breeding guar for high galacto-mannan content (>35%), improved meal quality and high seed protection
content (25-27%) with increased proportion of essential amino acids in guar. Development of Photo thermoinsensitive varieties of guar.
3.
Enhancement of breeder seed production to cater to the needs of high replacement rate annually in guar.
4.
Ensure adoption of new technologies through frontline demonstration at farmer’s fields.
5.
Expansion of guar cultivation in non-traditional areas.
Table-19: Promising Varieties of Guar developed at ARS, Durgapura.
S.
Variety
No.
Year of
Notification
Maturity
Duration
(Days)
Yield
Potential (q/
ha)
Area of Adoption
1.
Durgajay
1980
110-120
8-10
Rajasthan & Haryana
2.
Durga Safed 1980
110-120
10-12
All guar growing areas of India
3.
RGC-197
1990
110-120
10-12
All over the country. Most suitable for
mixed and inter- cropping.
4.
RGC-471
1991
110-120
10-14
Rajasthan suitable for fodder grains and
green manuring
5.
RGC-936
1991
85-90
8-11
Draught prone areas of Rajasthan,
Haryana & Gujarat
6.
RGC-986
1999
110-115
18-19
Good soils of Rajasthan with partial
irrigation facility
7.
RGC-1003
1997
85-92
12-15
All over India well suited under well
drained & coarse textured soils
8.
RGC-1002
1999
80-90
8-12
Arid & Semi- arid tracts of India
9.
RGC-1017
2001
92-99
10-14
All over guar growing areas
10.
Durgabahar 1985
First picking
45-50 days
after sowing
70-75 green
pods
All over India for vegetable purpose
11.
M-83
2000
45-45 days
80-90 green
pods
Suitable for summer and Kharif in
Rajasthan
12.
Rajasthan
Guar – 1038
2009
101-105
10-11
Rajasthan,
Maharashtra,
Haryana,
Madhya Pradesh, Uttar Pradesh, Gujarat
under Rain fed kharif and Zaid seasons
Source: Chaudhary, 2004 &HAU, Hisar
R&D works at CCS Hissar Agricultural University
It was observed through the discussion held with stakeholders that varieties like RCG 1017, RCG 1002, HG 365,
HG 563 are the best varieties of the below mentioned varieties of guar developed but the major problem is nonavailability of seed and poor extension support system for guar production in the country.
31

38. Table-20: Varieties released by CCS HAU
Name of
crop/ variety
Av.
Growing
Yield q/h conditions
Gum % Viscosity Salient features
(mpas-1)
Guar: Grain purpose
FS-277
6.0
timely sown
29.58
Erect, unbranched.
HG75
8.0
Do
30.76
HG182
8.0
Do
30.52
Branched, high yielding, pubescent little serrated.
HG258
8.5
Do
29.10
Branched, pubescent, smooth, short leaf
margins, resistant to diseases.
HG365
8.0
Early sown
31.51
2992
HG 563
30.92
3903
HG 870
31.34
3702
Identified
HG 884
29.91
2568
Identified for All India
HG 2-20
30.26
2749
Identified for All India
1932
Branched, high yielding, bushy, BLB tolerant.
Branched, dwarf, serrated leaves, early and
suitable for intensive cropping.
Guar: Fodder purpose
HFG-119
325.0
Timely sown
Broad, dark green leaves, moderately resistant.
HFG-156
350.0
Do
Tall, branched, tolerance to diseases.
Source: CCS HAU, Hisar
Table-21: Quality Seed Production during 2009-10 at CCS HAU, Hisar (in quintals)
Crop
Nucleus
seed
Breeder
Seed
Foundation
seed
Certified
seed
TFL
seed
Total
Seed
Guar
1.2
64
133
155
188
541
Current Progress
One hundred and thirteen guar germplasm lines were
grown and the genotypes GP 10, 12, 13, 54, 60, 63,
76, 81, 92 were found promising. Genotype HG 100 at
Hisar was better yielder in AVT-II whereas, HGS 08-1
at Hisar and CAZG-08-02 at Bawal in AVT I and HGS
HGS 03-52 and CAZG-09-2 at Hisar while GGS 13 and
GR 35 at Bawal in IVT were found promising. In LST,
genotypes IC 116454 X Kiran (F7), HGS 2-7 and HG 2-29
were found to be higher yielder than the checks. On
Farm Trials were conducted at different locations of
the state. On overall mean basis the newly developed,
released and notified variety, HG 2-20 gave about
6.72% increase over HG 563. (2009-10)
R&D Efforts and Industrial Requirement
The three main issues facing the guar gum industry in
India today are:
-
Inadequate crop size,
-
Fluctuating yield per hectare, and
-
Sub-optimal guar cultivation in non-productive arid
regions.
Therefore the R&D project is felt essential to lift Indian
guar exports in a big way, as it is now shackled by low
yield and low quality.
Agricultural Scientists have made efforts for developing New Guar varieties with better characteristics like higher
gum content, disease resistance, more productivity and mainly the thermo-photo-insensitive varieties of Guar which
would be suitable for non-traditional areas and for cultivation in the summer. Genotypes with high gum contents
have been given in Table- 22.
32

39. Table-22: Genotypes with high gum content (>35%)
Sr. No. Germplasm
Gum (%)
1.
DG8
35.35
2.
GP147-48-01
35.70
3.
SPSG96
35.70
4.
IC116616
36.23
5.
IC116709
36.75
International Experiences
The production and processing research efforts are continuously being made in various countries. These efforts are
directed to develop early maturing varieties with better gum quality, tolerant and pest resistance etc.
Production Research Australia
Approximately 400 lines of guar have been introduced into Australia and more than 100 of these have been included
in field trials. The strongly branching varietiesBrooks and ECR67 and the sparsely branching CP177 have been
commonly used for research in Queensland. Seed yields of up to 4 tonnes/ha have been achieved. Up to 35% gum
yields have been produced, but this level is dependent on both variety and environment.
Production Research Pakistan
Guar has remained a minor crop until the recent past. Now it seems destined to assume a large role among the
domesticated plants that supply the food and needs of human beings. It is well adapted to semi-arid and arid regions
of Pakistan but 80% of the crop is grown under irrigation. Soils with pH of 7.0 are better suited for guar production.
It is also tolerant to salinity.
Production Research United States
Contract guar acreage in the Texas South Plains and surrounding areas was about 30,000 acres in the year 2000.
In the last 20 years 15,000 to 40,000 acres of guar has been grown in the Vernon, TX, area with some across the
Red River in Oklahoma. Processing plant for field guar in the U.S., Rhodia, Inc., in Vernon mostly process guar
endosperm from India and Pakistan.
Guar is a minimal input crop and the cost of production is very less. Some fields with irrigation have developed
Alternaria and bacterial blight. Rhizoctonia is also a potential problem in heavily irrigated guar. Guar midge has
been an occasional problem in the past in the Vernon area.
Production Research Sudan
Guar is a new crop in Sudan, and is grown commercially to limited scale near Singa, Blue Nile, for seed processing
into flour. Research for new varieties of guar is presently done in EL Fasher Research Station and University of
Bahri, Khartoum, Sudan. The efforts are for developing varieties to improve yield with good gum properties and to
check toxicity for its food grade application.
33

41. Chapter-7: Issues and Challenges in Guar Industry
Major issues and stakeholders view for guar industry
With the extensive stakeholder discussion/ consultation, interviews conducted by NIAM research team on various
points of interactions the key insights of guar industry are summarized below:
Table-23: Research and Development in Guar
Sub theme
Enhancement in Area,
production and yield
of guar
Development of
varieties as per the
market demand/
industry needs
Development of
drought, pests and
diseases resistant
varieties
RESEARCH AND DEVELOPMENT
Farmer sustainability
and profitability
Issues and Challenges
Low yield of guar in
non-irrigated area is key
concerned.
High gum content and
High viscosity varieties
will help industry and
application
Being a food additive, use
of pesticide / insecticide
in guar is not desirable.
Crop failure due to
drought is frequent
- Lack of knowledge /
technology at Farmers
end to boost production.
- Poor extension of
production technology
Recommendation/ requirements
More area should be brought under cultivation / high
yielding variety to be provided to farmers.
High gum content and high viscosity varieties (like HG
365) to be developed.
Involvement of Industry
- Diseases resistant variety of guar is to be developed.
-
Short duration (60-70days) and Drought resistant
varieties are required
- Technology inputs to be provided to farmers like, high
yielding seed, pest management, harvesting, storage
etc.
-
Farmer industry linkage through direct marketing
and contract farming will improve profitability
- Agro technology extension will increase productivity
Farmer access to
Poor technology and input Technology inputs to be provided to farmers like, high
technology and inputs access to farmer
yielding seed, pest management, harvesting, storage
etc.
Guar R&D centre is required to develop and extend the
technology and varieties to farmers
Funding bases
To be Funded by govt. as
IPR to be given to breeders.
for breeding and
commodity is earning
breeders Rights (IPR) foreign exchange.
Negligible involvement of
Guar industry
Value drivers for
Value added products will 1) Hydrolysed guar for dietary fiber use.
Research and
help all stockholders of
2) Cationic guar for personal care use.
Development
industry
3) Hydroxypropyl guar for construction, personal
care, oil field uses
Negligible industry –
4) Odorless and tasteless guar for food use.
research linkage
5) Development of HYV / viscosity for fast hydrating
guar.
6) Organic guar (certified).
7) Removal of odor of guar meal and its use as a
protein supplement for human consumption.
8) Research – industry linkage to be strengthened
Seed replacement
-
Farmers generally use -
Development of required varieties and extension is
ratio, farmers access
own produce or buy guar required for quality production, better productivity
to HYV seed
from other farmers from and farmer income
village and use as seed, -
Seed multiplication and timely availability in market
seed replacement ratio by Agri. Univ/ State Seed Corporation is required
is below 10%.
-
Availability of HYV seed
and quality of seeds to
farmers is major issue
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
35

42. Table-24: Marketing Infrastructure for Guar
Sub theme
Issues and Challenges
Recommendation/ requirements
Transportation
- Long distances to port of -
Hinterland ICDs to be developed nearer to the
exports
manufacturing locations;
- Need
significant Indian Railways to give special consideration to the
improvement
trade
Storage and
warehousing
Lack of warehousing in
rural areas
-
Warehousing corporations / pvt developers to take
the lead
- Training to stockholders
-
Needs infrastructure for cleaning and grading in
market yard
MARKETING INFRASTRUCTURE
Quality certification
Non availability of
Accredited Labs. in the
processing hubs of guar;
Marketing policies
- Direct marketing
arrangements at mandi
yard
For food grade guar gum exporters, HACCP is
mandatory. But guar gum industry is not regulated
by govt. In my view, guar, being a food additive and
export potential, it should be regulated by govt.
Lack of national food data,
agency like, PFA and industry should follow GMP.
norms;
- Quality certification lab
Certification agency for
food/ different application - Food laws as per E.U./ Foreign countries;
-
Specify place for direct marketing at each market
yard
- Help in farmer industry linkage for contract farming
-
Promotion of Contract
farming in Guar
Improvement in
efficiency and
effectiveness of
supply chain
- Price
commodity
sensitive - Price stability can bring improvement in supply chain.
-
Direct marketing and contract farming should be
-
Long
supply
chain promoted
resulting
high
- More Hinterland I.C.D.s;
procurement cost for
industry and low price to - Enhanced Railway network/ infrastructure to swiftly
carry the containers to port
farmers
- Transportation;
-
Easy
availability
containers
of
Farmer access to
market
Marketing charges
and fees
No issue
Local taxes like mandi tax etc are being charged.
Taxation (Sales tax,
VAT, etc)
36
Information of prices is
- Easy way of information dissemination
not available with farmers
-
Commodity Futures Exchange price discovery helps
farmers to get good price.
No issue
VAT is exempted on guar.
State entry tax is different across, needs
harmonization

43. Table-25: Processing and Exports
S.
Sub theme
No.
Availability and gap
in the processing
technology and
up-gradation
requirement
Issues and Challenges
Either import of process and technology
- Process / technology gap -
development of our own process /technology.
in value added products
or
- Techno centre be developed on a national /state level
- Splitting technology –
to identify and make available the technology;
Yield and viscosity traits;
- Pulvrising technology
- certain chemical
application like cationic
guar, HPG guar
PROCESSING AND EXPORTS
Recommendation/ requirements
- Export promotion council to assign techno studies to
international agencies
Capacity utilization
of the available
processing
infrastructure (Gap
and enhancement)
Sufficient capacity is
available to meet export
requirement.
Capacity enhancement is being undertaken by
industry to meet market demand well on time.
Problems faced
by the exporters
in export of guar
derivatives
-
Major problem faced by
exporter: PCP test by
Vimta lab/ endorsement
by SHEFEXL as per
notification
of
govt.
to
Europe
bound
shipments.
Exporters are suffering a lot as it takes more than
three weeks to get this report and govt. endorsement.
- Tech know how – support required
-
Well equipped Testing lab be established near to
manufacturing area;
- Technical know how
- Testing facilities
Challenges from
alternatives to guar
gum
Locust bean gum, starch,
cellulose
Explore use in other industries, development of new
products
Efficiency & cost
effectiveness of
processing industry
- Very competitive industry - Being a commodity, whole industry is cost effective.
- Less
efficient - Efficient and cost effective machinery for processing
machineries but cost is required
effective because of its - Advanced milling technology be found out suitable for
export market demand the process
at present
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
37

44. Table-26: Export and Industry promotion for Guar
S.
Sub theme
No.
EXPORT AND INDUSTRY PROMOTION
Certification
for export
Issues and Challenges
Recommendation/ requirements
issues HACCP, ISO 9000, ISO It should be made mandatory for food grade guar
22000, HALAL and Kosher industry to have these certificates or this industry
certificates are required should be regulated by govt. agency like PFA
for food grade guar
- Regional laboratories, certification agencies required
- Time consuming
Government policies -
Govt.
has
already - These policies should continue to help exporters for
to enhance export of extended some policies growth of industry and value addition
Guar products
to enhance export of
-
Re-classify HS 130232, only Guar Gum Treated and
guar, viz. VKGUY and
Pulverized qualify for this, VKGUY benefits not to be
DEPB
given for Splits.
But guar splits are
Special assistance for adoption/ import of advanced
intermediate
product
technology
and export of processed
& finished product is
encouraged, guar splits
& meal do not qualify
for HS 130232-Mucilages
and Thickeners
-
Neutralization of taxes
to reduce the transaction
cost
China
is
emerging China has nil duty on guar split import from India and
Choice drivers for -
current/
emerging market for guar gum however imposed import duty @15% on guar gum
powder from India to have value addition in China.
markets
industry.
Therefore, Indian govt. should imposed duty on guar
- Development of markets
split @ 15% and part of this money to be spent on guar
in developing countries
gum R&D.
to reach the customers
directly
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
38

45. Table-27: Price and Market Intelligence
Issues and Challenges
Recommendation/ requirements
Volatility in prices of
guar seed and guar
gum
Price volatility is a
major issue face by guar
industry.
Commodity Futures Exchange price discovery
mechanism has supported industry to reduce price
volatility partly. But more transparency is required to
reduce price volatility, viz. computerization of mandi
record / sowing records, storage record etc.
Commodity futures
trading and guar
industry
PRICE AND MARKET INTELLIGENCE
S.
Sub theme
No.
Additional and
transparent mechanism
for price discovery and
advance price signals
-
Trading on Commodity Futures Exchange to be
continued.
-
Capacity building of all stakeholders on hedging is
required
- Increase hedging and control excessive speculation
Price discovery
mechanism
Based on Demand and
supply
Through Commodity Futures Exchange, better price
discovery is ensured.
Shaping of market
influences/behavior
Monsoon trend,
- More transparency is required.
Crop acreage;
-
Buffer carryover can be maintained to moderate
prices and maintain supply
Harvest size
- Agency should be their for creation and dissemination
- Sufficient market
Market intelligence
of market intelligence;
on trends & new
intelligence is not
product requirements available to farmers and
- Close rapport between the user of the product and the
other stakeholders
/ preferences- their
manufacturer/ exporter
impact on guar
- Dissemination of
products requirement
information to grass root
level
Access to signals of
producer/ consumer
market
Limited but Enhanced
after commodity futures
in guar seed
- Information dissemination to farmers to be ensured
-
International benchmarks be identified which affect
guar markets and regular dissemination of market
info on these benchmarks
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
39

46. Table-28: Guar Industry Value Chain
Issues and Challenges
Recommendation/ requirements
Supply Chain: from
input suppliers to
farmers and to the
end users of guar
products
GUAR INDUSTRY VALUE CHAIN
S.
Sub theme
No.
- No direct link between
farmers and the
manufacturer
- High viscosity (HYV)
seeds are mixed with
normal variety.
- Long supply chain
- Certified HYV seed to be kept and stored separately.
To be used for value added product.
- Contract farming may be one of the options
- Product specialization according to user industry
Farmer’s access to
knowledge, resource
and profitability to
farmers
Lack of knowledge of
farmers about guar
More training to be imparted to farmers. In Rajasthan
and Haryana, there should be govt. farm house to
impart training on this type of cash crop.
Sourcing of Guar and
other raw material
and its role in
enhancing returns to
farmers
Value addition in
each stage of guar
processing and
marketing
If contract farming and direct market arrangements
are made, will help farmers getting assured market
and better price & industry to be competitive
Good scope for value
addition at each stage
- Support is required at each stage.
- Export of raw material (splits) should be discouraged
- direct link with the farmer is required with the
A
industry
- This crop requires very less inputs and being a legume
crop, nitrogen is fixed up in soil for better return in
terms of high yield of next crop.
Demand
No issue
- Industry is growing 6-8%/ annum
- Identification of more usages/ applications;
- Research and development
Identification of new markets
Identification of new
market opportunities
GUAR INDUSTRY VALUE CHAIN
Industry response to Link missing
give farm viability and
sustainability
New application of guar / R&D institution for Guar seed production and
China
processing technology development and dissemination
Action oriented plan
is required, capacity building of fragmented industry
particularly for food safety aspects is required
Understanding
of demand, guar
types (varieties)
and production
requirement
- Difficult to understand
-
Every application demands new sets of properties;
- Absence of know-how
products are tailor made as per customer requirement.
with the Industrialists on -
Dissemination of information and tech on various
various types/ varieties
varieties of guar seed to the processors
of guar seed
What
are
the New uses like building, Technology is required to tap these emerging markets.
emerging sources of ceramics etc
demand
Demand for
specialized labour,
professional
advise service and
technical support
as part of farm/
industry viability and
sustainability
- Shortage of trained
manpower in industry
- Lack of know-how and
specific courses on
technology, product
bio chemistry like
hydrocolloids, polymer
technology
-
Need to develop trained / skilled manpower by
imparting technical training.
-
Guar industry is small and fragmented requires
capacity building mainly on food safety aspects;
-
Specific streams of courses/ specialization
be
enacted relating to hydrocolloids, polymer techno etc
Industry Scales and
Scope
Size of industry
Being a commodity, scale will play key role to make it
sustainable in long term.
Impact of WTO/ trade
rules
Access to various markets Reasonable access to various markets of the world
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
40

47. Table-29: Guar industry associations/ representation
GUAR INDUSTRY ASSOCIATIONS/ REPRESENTATION
GUAR INDUSTRY ASSOCIATIONS/
REPRESENTATION
S.
No.
Sub theme
Issues and Challenges
Recommendation/ requirements
Governance and
representation of
grower and other
stakeholders in the
interest of guar value
chain
- Very poor representation - guar growing districts should have proper
All
from farmers.
representation.
Roles, leadership
quality, skills,
competencies,
decision structures
- Associations are not very For the growth of entire guar industry, there should
effective and require be sub –groups at each level and then it should be
change for growth of coordinated by a nodal agency to frame rules / std.
industry.
-
Size of farm holdings or -
Stake of growers can be increased in case they
big size cooperatives are come in adequate size
missing which can take
the plantation of guar on
an industrial scale
-
Participation of small
and
medium
size
industries and farmers
cooperatives is missing
Community factors/
impacts
- Very less participation
- To be strengthen.
Regionalization
and consolidation
to match these
efficiencies
Missing
Requirement of
internationally
sustainable and
commercially
competitive guar
industry development
Due to contamination of This industry need to be regulated by a competent
PCP in food grade guar has govt. agency to sustain on long term basis.
damaged image of whole
industry and some plants
in un-organized sectors
really need improvement
Requirement
of whole-ofchain industry
body to address
fragmentation and
redefine roles
- Very much required
- Regional factors strongly -
Balanced approach should be taken in national
manifested
interest
Regional chapters of the associations be carved out;
-
R&D institution looking all aspects (right from
production to export) of guar is required
- be aware about the
To
regional disparities and - A national approach be devised to rectify the gaps
a wholesome approach
and fragmentation
Source: Sharma Purshottam, 2012, Reforming Guar Industry in India: Issues and Strategies
41