Guar seed futures prices on the national futures exchanges may weaken in the short term on supply pressure as fresh arrivals of new crop will pick up in the next few days. But overall prices are likely to remain firm in medium to long term on good export demand and lower crop.
Guar seed spot price in Jodhpur market was quoted around Rs 1,675-1,680 per quintal on fresh inflows of new crop while Guar seed November contract on NCDEX was quoted firm around Rs 1,716 per quintal, up by about Rs 30 a quintal over past two-three days on some export enquiries.
Bearish sentiments prevailed at both Spot and futures market during the last week as Haryana government has removed 4% VAT on Guar, a trader said. The Haryana government has decided to do away with value-added-tax (VAT) on Guar seed, Guar gum and Guar powder with effect from 1st October, 2007.
?Arrivals of new guar in Rajasthan and Haryana have improved to nearly 15,000 bags this week and may reach increase to 60,000-80,000 bags a day by November first week,? an analyst said. Export demand is expected to be good while domestic demand is seen improving at the current levels as millers expect the prices to rule firm in the medium term on good export demand, he said. The EU begins accepting Indiam guar gum consignments as no signs of toxins were found in the test conducted in Hyderabad.