Guar gum is one of the major markets in hydrocolloids that is extracted from guar beans that is majorly grown in India. It is used in food and feed applications
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Guar Gum market frequently asked questions
As per Beroe's analysis, guar gum market price and net profitability of guar splitters is determined by the market price of the by-products, like guar churi and korma
Guar cultivation is known to be highly productive as it requires lower agronomic inputs and provides multiple ecosystem services through activities like prevention of water pollution, conservation of nutrients, lower utilization cost, and others. Some positive impacts of guar gum include: Longer photosynthetic process, extended growing season and longer green leaves enhance the air purification processes Presence of greater root mass reduces soil erosion and soil carbon loss Having deeper rooting depths allow them to intercept, retain, and utilize more precipitation It's a low emission crop releasing less than 3,000 kg of CO2 equivalent emissions Owing to these benefits, the future demand of guar gum is quite high since it brings a positive impact on the environment and successfully converts multiple arid areas into productive uses.
Guar Gum market report transcript
Global Market Outook on Guar Gum
The global hydrocolloids market size was estimated at $9.77 billion in 2020 and is expected to grow at a CAGR of 5.3 percent from 2020 to 2025. Growth of the hydrocolloids market is driven by the expansion of the processed food industry because of the increase in demand for convenience foods in the emerging countries of the Asia Pacific, South America, and the Middle East & African regions.
Supply Chain Analysis
Despite the opaque nature of guar gum's supply chain in India, demand continues for the commodity. A close monitoring of the development of guar supply chain may help the large buyers to predict future price and supply trend.
The commission agents charge a prescribed brokerage of two percent from the buyers to facilitate the trade in APMC markets.
- These seeds are collected, stored, loaded into transport, and taken to the mundi (market). It is a large market place, where all the agricultural produce of the farmers are brought and sold to ensure fair price to the farmers
- The produce brought by farmer is auctioned by authorized Aadat (Commission Agents)
- Auction participants mainly consist of traders, splitters, processors, and stockist. No exporters are involved here, as export of guar seeds is not allowed
- There are lot of traders, stockist, and brokers, who have their office situated in the mundi area itself. They deal with multiple commodities. However, guar has been their favorite recently. There are around 300–400 guar splitters located just in Rajasthan
- The major suppliers of guar chemicals in India, such as Vikas, HiChem, Rajasthan Gums, etc., are vertically integrated from making splits to exporting of the chemicals
- The guar market is fairly consolidated as the top five processors are believed to be controlling more than 60 percent of the market
To facilitate voluminous supply of guar complex products, traders or wholesalers are being widely observed as a convenient and profitable distribution channel.Over two-fifth of the revenue being procured in the global guar complex market is likely to be accounted by their distribution through traders or wholesalers.
Physiological Characteristics of Guar Crop that Supports Environment Sustainability
Guar cultivation provides multiple ecosystem services and also require lower agronomic inputs. Some of these activities include prevention of water pollution and nutrients conservation, storage of more carbon, development of better pest tolerance, and lower utilization cost.
- Cost effectiveness and environmental impact of the guar production process are likely to be positive compared to other crops
- It has longer photosynthetic and growing season and longer green leaves, which enhance the processes of air purification
- The presence of a greater root mass reduces the risks of soil erosion and soil carbon loss compared to other crops
- Guar crops have deeper rooting depths where they intercept, retain, and utilize more precipitation
- It is a low emission crop, since the production process release less than 3,000 kg of CO2 equivalent emissions
- Augmenting usage of guar gum in industries proportionally increase its demand. This could lead to a trend of replacing trees with shrubs, which may increase ground level ozone (O3), which is a polluting gas
- Despite this, the crop successfully converts previously arid areas into more productive uses. The guar gum has therefore been seen to have more positive environmental impact than other similar plants
Sustainability Measures by ECO Guar Group
- Eco Guar Group practiced sustainable farming avoiding hazardous synthetic chemicals along with green technology and zero manufacturing discharge
- Eco Guar Group supports stronger, vital communities, helping make life healthier and safer for workers, and the families in the surrounding communities
- Eco Guar Group uses green technology in its guar production. They use solar panels to generate renewable energy to heat water required in processing of guar, thereby reducing LP gas usage by over 50 percent
- Additional measures require all motors used in manufacturing to be EE3/EE4 highly-efficient rated, reducing electricity usage by 25 percent
- Eco Guar Group supports sustainable practices, promoting healthy ecosystems with no actions that degrade soil, water, or other natural resources, and making continual efforts to lessen the environmental footprint
- Overall, there is zero discharge with no smoke, dust, and polluted water. The only remaining component from guar gum processing is the guar husk, which is recycled into the natural animal feeds of guar korma and guar meal churi
- The company procures its crop from rain-fed fields in semi-arid states in Northern India - Rajasthan, Punjab, and Haryana
- Since it is rain-fed and does not require additional irrigation, guar neither draw from ground water natural resources nor impact communities' water supply