Guar Gum is derived fromendosperm of the guar plant (Cyamopsistetragonoloba). Guar is a legume crop,which grows best in sandy soils and needs moderate, intermittent rainfall withlots of sunshine. Guar Gum is a natural high molecular weight polysaccharidecomposed of galactose and mannose units combined through glycosidic linkages.It is a white to cream-colored powder, which is available in differentviscosities and granulometries depending on the applications.
Guar gum is used as a thickeningand binding agent in the food, textile, paper, pharmaceutical and oil industry.Highly refined guar gum is used in the food industry as a stabilizer in icecreams, as a meat binder and a stabilizer for cheeses, instant puddings andwhipped cream substitutes. Guar gum is used in industrial applicationsincluding cloth and paper manufacture, oil well drilling, explosives, oreflotation, and many other applications.
India exports about 75-80 percent of its Gum production annually. After India, Pakistan is the majorcompetitor in exports. The consumption pattern of guar seeds is largelyinfluenced by the demands from the petroleum industry of United States ofAmerica and the oil fields in the Middle East as the derivative products ofthese seeds are quite useful in the petroleum drilling industries.
The use of gum in industry isgoing to only increase in future. In fact, the US Food & DrugAdministration department has approved guar as a replacement to fats in food.Guar is a cheaper substitute to Xanthan gum (pure culture ferment) or locustbean gum. The processed food industry in India is expected to grow at a rate of10% during 2010-2015. New applications and substantial market growth areexpected. The same goes for the pharma as well as the personal care industry.These industries are not just growing domestically but internationally as well.
Factors influencing prices
Changesin production due to rainfall fluctuation
Demandand supply mismatch
Hoardingand black marketing
Guar Gum Futures
Guar gum futures are trading onexchange platform since July,2004. Exchange traded guar seed futures are idealfor price risk management needs of the processors, exporters and end users.