Guargum Industry Gets Robust Export Orders.

KOLKATA: A slowdown in the US and the debt crises in Europe have not affected the guargum and sesame industries. The unit price realisation has increased in the last quarter due to limited supply.

The industry has now put forward a proposal to the commerce ministry for increasing acreage in Rajasthan, Haryana and Gujarat.

Talking to ET, PK Hissaria, managing director of Sunita Hydrocolloids, said: "The recession is yet to affect the guargum industry. The next few months are critical for the exports as the global importers will close their financial year in December. There may be come decrease in demand; however, as of now, prices remain firm in the global markets."

The export figures shared by Shellac & Forest Product Promotion Council (Shefexil) show that exports has risen by 200% in value terms in the first three months of the current financial year. In June this year, the exports have gone up by 255.73% compared to the same period previous year. Based on this trend, the industry is expecting to achieve a Rs 2,845.65-crore export turnover in FY12 compared to Rs 2,276.52 crore in FY11.

The area under guar cultivation in Rajasthan this season stands at 2.9 million hectares, compared to 3 million hectares last season. In Haryana, the area under guar has come down from 2,56,000 hectares registered last year to 2,15,000 hectares this year. According to the first advance estimates, guar seed output in Rajasthan is estimated at 11.36 lakh tonne for 2011-12 season compared to 15.46 lakh tonne in 2010-11. Nearly 75% of the guar gum and their derivatives produced in India are exported to the US and Europe. The US had imported guargum worth Rs 1,009.98 crore in FY11.

"The demand for guargum is increasing in the US and Europe for industrial use like oil well drilling, mining, construction and explosives. We have submitted a proposal to the ministry for increasing acreage in growing regions," said Debjani Roy, executive director of Shefexil. Kanak Thakker, vice chairman of Indian Oil Seeds & Produce Export Promotion Council, said the recession has not yet affected the sesame industry. Sesame is used in burgers and other food items.

Source : economictimes.indiatimes.com