Cluster Beans Prices Explained

Cluster beans’ prices showed a consistent trajectory, indicating a balance between supply and demand. However, with the current global inflation, their prices started to fluctuate as demand from end-user industries increased. Presently, India is the largest cluster bean producer, accounting for 80% of the world’s production.

Why are cluster beans prices fluctuating?

1. Demand from Various Industry

The food, medicine, and gas industries utilize cluster beans for various purposes. Thus, its price fluctuation largely depends on changes in demand from these sectors.

For instance, the need for guar gum which is made from cluster beans in the oil and gas industry for hydraulic fracturing plays a big part in its pricing. Overall, changes in demand from these industries cause cluster beans value variation.

2. Oil Drilling Operations

The petroleum sector is the main consumer of guar gum powder. Thus, any changes in oil drilling activity have a significant impact on the demand and prices for cluster beans, especially in locations like the United States and other parts of the world.

3. Global Economic Challenges

Economic challenges such as energy demand, exploration initiatives, and overall investment in oil and gas activities largely influence the demand and market price of cluster beans. For instance, the war in Ukraine and the global economic slowdown decreased demand for various products, including cluster beans, affecting its price.

4. Crude Oil Prices

A rise in the price of crude oil leads to greater production costs for guar gum due to increased demand and possibly additional expenses associated with agriculture. As a result, this escalation in production costs will result in a corresponding rise in the prices of cluster beans.

Which variables impact the price of cluster beans?

• Demand from Various Industry
• Oil Drilling Operations
• Global Economic Challenges
• Crude Oil Prices
• Supply Variations
• Market Speculation

Where do cluster beans come from?

Cluster beans are leguminous plants and serve as the sole source of guar gum. Made from cluster beans, guar gum is known for its thickening and stabilizing properties and has been used for many years in the food and oil industries. Additionally, they are harvested while they are young and tender. The harvesting process involves several steps:

1. Harvesting – Cluster bean harvesting usually takes place between 50 to 70 days following planting, when the pods are still young and fragile. Then, the pods are collected before the seeds reach maturity and harden.

2. Use of Cutting Tools – They are occasionally harvested with the use of cutting tools like shears or sickles. Also, the efficiency of the process needs extra care to ensure that the pods are chopped without endangering the plants.

3. Regular Harvesting – Harvesting of cluster beans is frequently carried out at regular intervals throughout the growing season to maintain a consistent yield of fresh and tender pods. Additionally, this practice promotes the ongoing development of new pods on the plants.

4. Post-Harvest Handling – After harvesting, they are gathered and sorted, with ripe or broken pods often removed and thrown away. Then, they are packed into containers to be delivered to markets or facilities for processing.

What are the uses of cluster beans?

Cluster beans have a substantial amount of dietary fiber along with being rich in vital elements like iron, manganese, potassium, vitamin C, and K. Furthermore, these contribute to bone strength and cardiovascular health by regulating blood circulation. Cluster beans have a wide range of industrial applications and these are:

1. Oil and Gas Industry – Guar gum is used in hydraulic fracturing to increase operational efficiency in the extraction of oil and gas. It serves as a thickening agent, making it easier for proppant sand to move around and keeping fractures open.

2. Food Industry – It is used in the food industry as an emulsifier, thickening agent, and stabilizer as it makes goods like ice cream, soups, gravies, and dairy products more stable and have a better texture.

3. Textile Industry – Textile industries use guar gum in printing as a thickener for the dye, ensuring even color distribution.

4. Pharmaceuticals – It is used as a binder and disintegrating agent in tablets.

5. Cosmetics – Guar gum functions as a thickening agent and is found in products like lotions, creams, and shampoos.

6. Paper Industry – To improve the creation of sheets, strengthen folds, and produce a more compact surface that is ideal for printing, the paper industry uses guar gum.

7. Explosives – Due to its ability to bind water, guar gum is used in the manufacturing of explosives to enable the controlled release of energy.

What is the future price of cluster beans?

Cluster beans are used extensively in the food and beverage sector, mostly as a food additive that serves thickening, stabilizing, and binding purposes.

Its market is expected to grow as a result of the growing investigation into guar gum’s potential uses in cosmetics, medications, and oil and gas well stimulation. As a result, the significant demand for guar gum is encouraging its application in numerous industries, indicating a greater need for guar gum production in the future.

Thus, the price of cluster beans will be $2.27 per kilogram in 2028, with a projected market value of  $1.46 billion in the same year.