Market Impact: High Prices Dampen International Demand for Indian Sesame - Sesame Industry: Navigating Challenges and Price Fluctuations Affecting Market Sentiments

Global Sesame Weekly Report

Mintec Global
Spread the news!

Supply Dynamics: Production Estimates and Challenges

African Producers: Nigeria, Sudan, and Burkina Faso

African countries remain pivotal to the global sesame supply, with Nigeria, Sudan, and Burkina Faso leading in production. Nigeria’s estimated sesame production for 2023 is between 320,000 to 350,000 metric tons (MT), with approximately 200,000 MT already exported. Sudan’s production estimates range between 350,000 to 400,000 MT, although exports have been slow. Burkina Faso anticipates a production range of 180,000 to 200,000 MT, with a significant portion already reaching key markets.

These countries face various challenges, including currency devaluation in Nigeria, which, while benefiting local farmers through higher local prices, also leads to market instability. Sudan and Burkina Faso’s production and export dynamics further underscore the importance of these regions in satisfying global demand.

Asian Contributions: India and Pakistan

India’s summer sesame sowing in Gujarat is expected to start in late February or early March, with an estimated sowing area of 110,000 hectares, down from the previous year’s 123,000 hectares. This reduction is attributed to potential water scarcity issues, indicating environmental challenges impacting production.

Pakistan has shown remarkable growth in sesame exports, increasing by approximately 356% in value between 2020 and 2023. This surge has positioned Pakistan as a significant exporter on the global stage, highlighting the country’s increasing importance in the sesame market.

Import Trends and Market Demand

China and Japan: Major Importers

China and Japan continue to be major importers of sesame seeds, with China’s current stock at ports totaling around 120,000 MT, sourced from various countries including Nigeria, Sudan, and others. Japan imported approximately 176,121 MT of sesame in 2023, closely mirroring its 2022 imports. These figures highlight the consistent demand for sesame seeds in Asian markets.

South Korea’s Tender Activity

South Korea’s issuance of a tender for 12,000 MT of sesame seeds on February 8th indicates the country’s ongoing demand. The detailed tender process reflects South Korea’s strategic approach to securing its sesame seed supply amidst global market fluctuations.

Price Trends and Market Predictions

The global sesame market is witnessing fluctuating prices due to varying factors such as currency devaluation in Nigeria, which has led to record-high prices in the local currency. These fluctuations are critical for traders and producers to monitor, as they significantly impact profitability and market dynamics.

Summer Sesame Sowing in Gujarat

Gujarat, one of India’s leading sesame producing states, is expected to see a decrease in summer sesame sowing area from 123,000 hectares (Ha) last year to 110,000 Ha this year. This anticipated reduction is attributed to several factors, including potential water scarcity issues prevalent in several areas of Saurashtra. The sowing process, slated to begin in late February or early March, is crucial for determining the year’s production output. However, it’s highlighted that making precise estimates at this stage is challenging due to environmental and climatic uncertainties.

Sesame Oil Exports From India

In terms of sesame oil exports, India witnessed a 10% decrease in 2023, exporting around 8,551 metric tons (MT), down from 9,549 MT in 2022. This decline underscores the fluctuating demand in the international market and potentially reflects competitive pressures or changes in global consumption patterns.

Export Growth and Challenges

India’s sesame industry faces the dual challenge of maintaining quality while increasing production. The decline in sesame oil exports points to the need for enhanced quality and marketing strategies to bolster India’s position in the competitive global market. Additionally, the expected decrease in summer sowing areas due to environmental challenges like water scarcity highlights the importance of sustainable farming practices and the need for technological innovation in agriculture.

For improved website design , harvest information , statistics , please subscribe CMBroker