Study Finds a 20% Increase in India’s Guar Gum Cultivation, New Suppliers Poised to Enter the Market

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Three Headed Lion Inc. (THL) today announced the release of its latest market report- 2013 Guar Gum Report: INDIA (September Update).

“The recent price rise of the commodity despite a stable demand-and-supply situation once again highlights the fact that this market is vulnerable to manipulation,”

Three Headed Lion Inc. (THL) today announced the release of its latest market report- 2013 Guar Gum Report: INDIA (September Update).

Guar gum is used in a wide variety of industries, such as food, animal feed, textile, pharmaceuticals, personal care, health care, nutrition, cosmetics, paper, explosives, mining and oil drilling. The report provides an in-depth assessment of the latest supply side trends and critical insights into the new guar season in India.

The total area under guar cultivation this season is expected to increase by 21% over last. Rajasthan, Haryana, and Gujarat – the three key guar-producing states – have exceeded the sowing area target set by their respective agriculture departments. Non-traditional guar cultivators in other Indian states have also shown keen interest in the crop this year.

With a strong carry forward stock from previous season, and a forecast for higher guar seed production as compared to last year, the market should witness good liquidity of seeds to meet current guar gum demand. Despite stable market conditions, the market once again showed its true character, as guar prices once again became volatile towards the end of August. Prices continued the upward trend well into the middle part of September. Prices were reigned in only after FMC, the Indian regulatory authority stepped in and once again ordered an investigation to identify forces responsible for the price rise.

“The recent price rise of the commodity despite a stable demand-and-supply situation once again highlights the fact that this market is vulnerable to manipulation,” explains Javed Matin, the co-founder of Three Headed Lion Inc., and the lead author of the report. “There is a lot of noise in the market and our goal as always is to get to the real facts and trends to accurately construct the true state of the market.”

The report is available at

The opaque nature of guar gum’s supply chain in India demands continuous, close monitoring of developments on the ground to better predict pricing and supply trends as 2013 season unfolds. While prices look stable at this juncture, there are several unknowns that could have a significant impact to the stability of the guar market. These include:

  •     How will the guar crop develop over the next 2–3 months?
  •     Will the nexus between influential traders and processors once again influence guar gum prices this year?
  •     Will the upcoming state elections in Rajasthan in November 2013 and national elections in early 2014 create enough uncertainty in the market to facilitate price manipulation?
  •     Will FMC stay vigilant and quickly counter any attempts by vested interests to play the markets?
  •     Will the weakness in the rupee continue at the current rate or can the new RBI governor rein in the drop?
  •     Is the government contemplating policy changes for guar gum?
  •     Are there any sociopolitical and security trends that have the potential to impact the movement of freight from guar gum processors to the export ports in India?
  •     What will happen if export ports encounter labor issues or greater capacity constraints, or a major security breach takes place?


IN THIS LATEST REPORT, the research team at Three Headed Lion reviews the current pricing and supply trends by evaluating key underlying market fundamentals.

The report also provides:

  •     dashboards to show how market fundamentals are performing
  •     uncovers the guar gum supply chain by revealing the opaque elements in each step from farm-to-export and presents a deep analysis of the guar gum industry in India by assessing each element of the supply chain- farmers, traders, guar gum processors and logistic infrastructure.
  •     reveals new developments on the ground, , with key insights from industry leaders and participants
  •     an overview of the current state of the Indian guar gum market
  •     in-depth review of critical factors impacting the supply and price of guar gum
  •     current sentiment of key stakeholders - farmers, traders, processors, and logistics operators
  •     an outline of historical trends and a forecast for 2013
  •     an assessment of the current state of the guar industry lifecycle in India
  •     market fundamentals dashboards by each supply chain element
  •     insights from interviews with key administrators, government officials, farmers, traders, processors and logistics operators
  •     expert recommendations for guar gum buyers
  •     detailed charts and graphs on pricing trends and production yields
  •     a comprehensive directory of India’s guar gum processors
  •     a comprehensive directory of India’s guar gum warehouses
  •     a comprehensive directory of India’s guar gum quality assurance consultants

Who should use this report?
Business and financial planners, business unit heads, purchasing managers, logistic managers, equity researchers, hedge fund managers, Investors, market researchers, and others interested in guar or guar gum.

DOWNLOAD the 2013 Guar Gum Report: INDIA at

About Three Headed Lion, Inc.:
Three Headed Lion Inc. (THL) is a USA-based company headquartered in Houston, TX with offices in India. THL’s mission is to empower global companies and institutions to minimize investment risk and maximize the value of their businesses and projects in India. We do this by providing critical micro level market data and intelligence, business risk management services, and strategic advice. THL’s operating model is built on its deep market presence in India and expertise that uses an unrivaled combination of local market experts and a network of 1000+ THL Market Intelligence and Information Providers (MIIPs) who are located in all districts across the subcontinent.

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Javed Matin
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