Guar Market Outlook 2025: Monsoon Boosts Sowing, Export Demand Supports Prices

Farmers across India are finally breathing a sigh of relief as the monsoon rains arrive, bringing much-needed moisture to the fields. The India Meteorological Department (IMD) has forecasted a promising outlook: seasonal southwest monsoon rainfall is likely to reach 106% of the Long Period Average (LPA), with a model error margin of ±4%. This points to above-normal rainfall across the country for the 2025 monsoon season (June to September).

Monsoon Boosts Sowing

Sowing Progress Accelerates

Thanks to the early onset of the monsoon, guar sowing activity is ahead of last year’s pace. According to the Agriculture Department:

• Rajasthan: 781,781 hectares sown as of July 4, 2025

• Gujarat: 1,240 hectares sown as of June 30, 2025

This early sowing may positively influence guar seed production in the coming months.

Guar Exports Rise 7%

On the export front, guar gum exports are showing strength. From October 2024 to May 2025, cumulative guar exports totaled 229,778 tonnes, a 7% increase over the same period last year. This rise reflects strong global demand for guar derivatives.

Current Market Conditions

The guar split price remains range-bound, closing at INR 99,000/- per metric tonne. However, underlying fundamentals point toward a positive price trend:

• Strong export demand continues to support the market.

• Lower crop output this season has resulted in tight inventory levels for processors, limiting the risk of further price drops.

  

  Guar Gum Market Impact

Global Factors to Watch

A key external factor impacting the guar gum market is the slowdown in U.S. oil production. A significant decline in the oil rig count during May reflects reduced hydraulic fracturing activity, which may soften short-term demand for guar gum.

As a result, analysts anticipate a steady-to-bearish price trend in the near term. However, this may be offset by tightening inventories and increasing export activity.

Strategic Buying Advice

Despite global headwinds, strong international demand is expected to stabilize prices and possibly drive them higher. Industry insiders view this as a favorable time to purchase guar for long-term needs. Every price dip presents a strategic buying opportunity.