Guar Gum – India’s Second Largest Agricultural Export Product in year 2013

Guar Gum Production in Relation to Other Main Export Crops

Latest statistics indicate that guar gum continues to enjoy an impressive growth in regard to annual production as well as increased exports. Figures from Director-General of Commercial Intelligence and Statistics (DGCI&S) show that Guar gum which has been regarded as India’s second largest agricultural export has overtaken the main export crops which is rice (both basmati and non-basmati rice). Data from DGCI&S shows that Guar gum exports account for 18% of India’s total farm exports which are valued at Rs 120,000 crore up from 7% as at 2010-11. In the period 2012-13 goma guar exports stood at $4.9billion, followed by basmati rice at $ 2.6billion and third came cotton at $2.6billion with the main export which is a non crop being plastic and linoleum at 5.0 billion.

Guar Seed - 2Reasons behind Upsurge in Guar Gum Export and Its Prices

In the period 2012 prices for guar gum powder increased by 900-1000% with the prices shooting up to Rs 100,000 per quintal of gomme de guar or guar gum with the seeds fetching Rs 35000 up from Rs 3000.This resulted to a 374% increase in exports but declined to 139% in the following period 2012-13.The increase in the export as well as the price was due to speculation of their being a drought hence the oil and drilling multinationals especially from the US stocking up to mitigate any imminent occurrence.

Future Growth Prospects of Guar Gum Market in India

India is the world’s largest producer and exporter of guar gum and guar gum powder in the world, with annual exports recorded at approximately 1-1.5 million tonnes. 80% of goma guar is used in Oil and gas drilling with the United States being the main market with an annual 40,000 tonnes of guar gummi(gum from guar). The growth path of guar is most prolific of all India’s export with an average growth rate of 21% according to the Government’s Union budget 2013. Figures from DGCI&S indicated a surge in basmati rice at 71% with the market share of non-basmati rice rising from 0.52% to 12% between the periods of 2010-11 and 2012-13.

Guar Seed - Guar Gum Splits - Guar Gum PowderAccording to Times of India publications (TOI) there has been a general improvement in the living standards in Guar growing regions of Rajasthan, Gujarat, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh among others. However, there is also an increase in competition from competitor countries with the main rival being Pakistan; other exporting countries of guarkernmehl or gum from guar include Australia and some parts of Africa. The US will still play an integral role in boosting demand for guar gum powder as well as goma guar due to the drive to attain oil self sufficiency which might go on for about 15-20 years according to International Institute of Strategic Studies(IISS). However, the drive for renewable energy might adversely impact the demand for guar gum as well as guar gum powder hence the need to foster exports to other regions such as Spain, German, France, Brazil, Sweden and United Kingdom among many other countries. All said and done, guarkernmehl, guar gummi, gomme de guar or simply guar gum will still continue to play a central role in regard to India’s crop exports. For more information please visit:

Ajit Patel

This Article has been written & posted by Ajit Patel.

Written by Ajit Patel

This article has been posted by Ajit Patel.

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