Newsletter

The market and price development in figures:

2017

The harvest was very poor and reached 2.05 million bags of 75 kg each. Prices were at a historic high of 2200 INR per 20 kg. A cautious purchasing strategy (no demand for large quantities) at least kept the prices stable.

Inquiries about large quantities immediately lead to higher sales prices in India.

2018

Due to the high prices of the previous year, the incentive for farmers to grow more psyllium was high. As a result, psyllium producers were finally able to record a very good harvest of 2.7 million bags of 75 kg each after 3 bad years. The offer exceeded the demand and as a result the prices decreased to 1350 - 1400 INR per 20 kg.

2019

After three short harvests (2015, 2016, 2017), there was a very good harvest in 2018 and the price fell to a historic low.

It is estimated that there will be a backlog of 550,000 to 600,000 bags of 75 kg each this year. This amount will be the largest in the last 20 years.

As a consequence of low production costs, farmers have grown less psyllium. Currently about 2 to 2.1 million bags of 75 kg each are expected. This means that a total of 2.7 million bags of 75 kg each can be expected this year, including the backlog from the last harvest.

The first smaller harvests are now coming into the market. The entire harvest will be completed by the end of April. Based on the quantities actually available, the price will level off.

Alexei Justiz
24.04.2019

It is well known that the last harvest from August to October 2018 was as poor as the harvest before, which unfortunately caused drastic price increases.

After the harvest, purchases were made only reluctantly on the assumption that prices would decrease after a while. This did not happen and prices therefore remain at a high level.

As the quantities of raw materials are still limited, price discounts cannot be expected until the next harvest in autumn.

Ricardo Pietruschka
24.04.2019

Applications:

• Baking industry
• Cereals
• Bars
• Pasta
• Yoghurt
• Dairy products

• Clean label
• Gluten free
• Allergen-free
• High omega-3 content
• High viscosity (water binding)
• Texturizer

The Guar prices have fallen since November 2018 with small deviations up and down.
Since February 2019, there has been an increase again.
This is caused by stable demand and limited supply of raw materials. This is not due to insufficient stocks but to speculative activities.

For some weeks, producers have been recommending to cover medium term contracts as prices are expected to rise slightly.

Important for the further development are the predictions about the expected rainfall, which are of utmost importance for the entire Indian agricultural industry.
The last forecasts expect about 7% lower rainfall than "normal". Depending on the forecasts, the farmers are chosing the corresponding agricultural products which are ideal according to expected weather conditions.

No reliable statement can be made about the new harvest beginning in October at this time.

Nevertheless, contracts for the second quarter are advisable.

Alexei Justiz
24.04.2019

Guar prices have moved in a narrow band of 83 INR/kg to 92 INR/kg during the last days.
Price movement of Guar splits since July 2017 until today.

The price and delivery situation has been virtually unchanged for some time.
In terms of prices, however, we have noticed a slight downward trend in recent days.

This is justified by increased production volumes in China. As is well known, some lines of xanthan producers have been shut down to meet demand. Especially from the oil and gas sector, smaller quantities were obtained.
The demand should have increased again and closed production lines are back in operation. This leads to falling prices.

At present, we see fairly stable prices and no significant changes are expected in the foreseeable future.

Dietmar Neupert
24.04.2019