The increase in India’s guar gum prices in September is largely because of increased demand from the food and beverage industry, since guar gum is utilized in such products for thickening as well as stabilizing. With more people consuming processed foods, demand for guar gum picked up speed. At the same time, supply is also weak because of weather-related interruptions in the main producing areas, impacting crop yields and hence the supply of guar gum. These shifts in farm production are of paramount importance, as they directly influence the pricing dynamics within the market. The dynamic balance between strong demand and supply issues brings into focus the place of the agricultural commodity in defining the direction of guar gum's market path. As producers work through these issues, all parties must be on guard to respond to shifting circumstances that could continue to influence pricing and availability over the next few months.
