Guar seed on weekly basis prices gained by more than 12% on slack domestic supplies, and demand from millers and stockists, though expectations of a bumper harvest due to expanded area under cultivation are seen weighing on sentiment.

Millers and stockists are very active in the market but supplies are less from the old crop as farmers have held back supplies.

Supplies from the old crop have been falling as farmers hold back on hopes of better prices, and arrivals from the new season harvest will only start rolling in by the month end.

As per the reports, guar crop in the country has risen this year by 25 to 30 percent on higher than expected rains.

India's guar seed production has fluctuated between one and 1.7 million tonnes (mt) in recent years.

However, higher carry-forward stocks and expectations of bumper harvest on expanded area were seen weighing on prices at higher levels.

Farmers in Rajasthan had sown guar on 3.5 million hectares against 2.9 million hectares in the same period a year earlier.

In 2012, the total area under guar seed cultivation in Rajasthan was 4.5 million hectares.

The state has received more rainfall than normal this season.

OUTLOOK: As per expectation guarseed rose and reached 8000 level. Looking to fundamentals and rise in margin by the exchange, correction is expected till 7500 level in coming week.