According to industry experts, the price of white sesame is set to rise, while black sesame will see an increase. Korea will announce a 15,000-ton white sesame tender next week, further influencing the market dynamics.
Gujarat’s Summer Crop Impact and Cyclone Woes
With 60 to 70% of Gujarat’s summer white sesame crop already in the market, arrivals are projected to drop by 50% in the coming days. Furthermore, the cyclone in Gujarat, causing heavy rainfall of 4 to 5 inches in each centre, has affected farmers’ sowing work. These factors have contributed to the current situation.
Global Factors and New Crop Arrivals
The arrival of Bengal’s new crop is steadily increasing, while Pakistan is offering its new crop at a low price in the world market. Brazil’s new crop is expected to enter the market in July-August, with an offering price of $130 per kg. However, the availability of Brazil’s crop in India will commence in August, making it unlikely for white sesame prices to rise.
Competing in the Korean Tender
With an expected announcement in the coming week, the upcoming tender in Korea will witness competition between India, Tanzania, Mozambique, Pakistan, and China. Due to crop damage, China’s sesame production is estimated to be two lakh tonnes. The current market sentiment of the Korean tender suggests no recession in sesame prices.
Domestic Demand and Pesticide Levels
Despite a decrease in sesame exports, the continuous increase in domestic demand prevents a price rise. Gujarat’s summer sesame crop has demonstrated excellent performance this year, with low pesticide levels. However, the long-lasting effects of the recession in the US and European countries have slightly affected exports.
Future Market Projections
Introducing Pakistan’s sesame offer has increased demand for Indian sesame in Turkey and the Middle East. However, a decrease in demand from China suggests a potential price decline in the global market shortly.