The White Sesame Market and Endogenous Demand
The white sesame market is presently experiencing buoyancy driven by endogenous demand, as the cost differential renders Indian sesame exports unfeasible vis-à-vis other nations. In the international marketplace, Indian sesame commands a price of USD 2300 per ton, while Tanzanian-Mozambican and Pakistani sesame ranges between USD 1780 to 1850 per ton. This significant price arbitrage obstructs the prospects of exporting Indian sesame at the moment, thereby relying solely on endogenous demand.
Conversely, the new Tanzanian-Mozambican crop retains around 30 to 35% of inventory, and Pakistan anticipates a sesame crop between 0.17 to 0.22 Million Tonnes, without any damage report despite rain. The forthcoming sesame tender from Korea looms as another critical factor, with India anticipated to secure the pellet tender, precluding other contenders. Contemplating the conditions in Sudan, sesame importation into India is implausible. Similarly, procuring from Brazil involves an extended 70 to 75-day period, rendering it an impractical option.
Hence, the white sesame market is poised to perpetuate its dependence on endogenous demand for the forthcoming trimester. Nevertheless, concerns persist in the black sesame market, as diminished purchases and summer crops may lead to reduced Kharif sowing, consequently escalating Jade Black prices in the ensuing 5 to 6 months.
Challenges and Prospects in the Sesame Industry
With the white sesame pipeline virtually depleted and the prospective arrival of white sesame after three months, an exigent necessity of 40k tonnes arises to satiate demand during August to October. On-going escalation in sesame consumption in Indian households and its medicinal applications notably contribute to the prevailing demand.
Nonetheless, the supply-side dynamics of white sesame pose challenges. An inadequate stock scenario prevails in states such as UP, MP, Rajasthan, Andhra Pradesh, and Telangana. Additionally, the earlier estimate of a 0.35 Million Tonnes to 0.4 Million Tonnes dry sesame crop in Bengal remains unmet, with only 0.25 Million Tonnes entering the market, contributing to supply shortfalls. The existing dearth of sesame in the Indian market, coupled with the onset of festivals, signals healthy demand, necessitating adequate provisioning to satiate requirements.
Regarding production, sesame cultivation has expanded to 0.69 Million Hectors in the country, surpassing last year’s 0.45 Million Hectares. However, meteorological conditions shall play a pivotal role in dictating final production outcomes.
Conclusion
To sum up, challenges and prospects in the sesame industry are contingent upon balancing endogenous demand, navigating supply constraints, and navigating global market intricacies. With meticulous monitoring and strategic planning, the sesame sector can navigate these complexities, ensuring a robust and flourishing market for this valuable commodity. Though no bearish tendencies for white sesame is seen in the near future, so we cannot expect the prices to come down. One can make purchases in the current market.