Fires of Lalghum boom in Gwar- fear of 2011 repeat

- Commodity Current : Jayavadan Gandhi

Nowadays, the fear of Corona outbreak in China, the issue of interest rates and inflation and the effects of the Russia-Ukraine war reaching Poland, the demand in the commodity sector at the global level decreased, all the markets were in favor of recession last week. Nine percent in crude oil, two percent in natural gas and metal commodities were also wrapped in recession. There is a bullish atmosphere in gold and silver these days. The surge in prices during the busy wedding season is a cause for concern in jeweler circles. Last month gold prices were in the range of 51000 to 52000 but have now bounced to the higher range of 52500 to 54000 and silver prices have touched the highs of 62000 to 63000. High prices are affecting demand. Most of the schemes are not having much impact. Globally, if the effect of inflation and war and Corona continues, the gold and silver market is expected to strengthen even more. Due to this, the possibility of gold prices going up in the range of 55000 to 56000 and silver prices in the range of 66000 to 68000 has gained momentum. The state of Kerala, which has the highest consumption of gold, has now started experimenting with a single price across all cities. Big gold trading companies as well as gold associations have now announced a decision to give uniform gold prices to customers based on the bank rate. At present prices vary from jeweler to jeweler in every state. Generally, gold prices in most states are Rs 150 to 300 per gram higher than the bank rate. Now Kerala has become the first state in the country to have one price of gold at the same time, setting new expectations for the whole country.

Meanwhile, the agricultural markets are currently tight due to lack of demand and supply in most of the commodities. At present, wheat, rice, and spices are the first choice crops for the farmers in the new season. However, the cultivation of pulses is expected to decline. Rising wheat prices have become a headache for the government as the market continued to rally with wheat rising by Rs 100 to Rs 125 last week. There are also fears that the central government may end the free wheat and rice scheme in the coming months.

In the spice market nowadays, the business of guar has grabbed everyone's attention. Stockists and farmers have become alarmed as guar seed market, which is usually in the range of 4000 to 5000, has gone up to 5000 and guar gum market which is in the range of 8000 to 9000 has increased to 12000. However, according to traders, there is currently a reversal bullishness in Gwar. Since there are different opinions on the production of guar, will there be a repeat of 2011 in guar? That matter has become the talk of the market. The production of guar is generally estimated to be around one to one and a half million sacks, but lately the increasing demand of guar from countries like Arab countries, Europe, Russia and America has caused a rush among the business class, at the local level, the prices of guar went up to 6000 and the prices of gum went up to 12500. With this situation, guar seed and gum are expected to go up to 6500 and 13500 in the market. Due to which the stockists have fallen into the goods cover to make profit and the farmers have also come into a wait and watch position over the guar sale.