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Can Sesame Seed Market Fare Better With Low Production?

by | Apr 19, 2022 | Oil Seeds, Sesame Seeds

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Last year the government showed the sesame sowing figure to be 91.000 hectares. However, with one and half-ton per hectare production, the total yield was 175.000 thousand tonnes, and it resulted in lesser areas of cultivation than reported by the government. As per local reports, the overall summer production for sesame is down by 30 percent.

Factors that have impacted the yield are unfavorable weather like unseasonal rain, excessive heat, and cold temperatures.

The question now remains will low yield help the price move up for the summer sesame seeds? Several factors will impact the new crop price, as per market experts.

Current Scenario

  • The forward carry stock is estimated to be about 25.000 tonnes.
  • However, only 15 percent of the stock is reported to be of excellent quality.
  • The rest of the stock is likely to be used for crushing.
  • The price of the white sesame seed moved up to $2,74 – $2,88 per kg, whereas $2,88 – $3,20 was reported for black sesame seeds.
  • The arrival of the new crop is expected to start from May 15 onwards.
  • There is a severe shortage of good stock in the market. The trend has been like this for the last few seasons.
  • The price increase in edible oil due to the war between Ukraine and Russia makes crushers excited about buying sesame seeds.
  • Leading stockists reported that the price of sesame is relatively low compared to soybean oil and palm oil.
  • Large traders in parity and the south are being regulated since the demand for the new seeds will be vital as soon as the arrival begins.

Factors That Can Impact The Price 

  • The exporters have procured only 40 percent of the 9.000 tonnes of Korean tender. Hence with still 60 percent left to be fulfilled, the purchase is reported to be slow. One of the main reasons that the procurement for the Korean tender has failed to pick up as expected is due to the pesticide-related regulations.
  • Korea has imposed stricter regulations on its imports of sesame seeds. As a result, the traders are apprehensive that the Indian sesame will fail to pass the tests.
  • Moreover, the increase in container fares and crude oil is hurting the global operation on exports.
  • The following Korean tender is for April 26, and the speculation depends on how India fares at the bidding will eventually impact the sesame price in the market.

Hence despite the low production, the international demand and the quality of the produce will eventually determine the commodity’s price.

Price Trend For April

White Natural Sortex 99.95%

Date Price
April 11-18 $1,64 per kg FOB
April 4 $1,65 per kg FOB

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