The demand for Indian natural sesame from countries like China, Türkiye, Korea, and Gulf countries has been affected by the high prices. Currently, no government is showing any demand, and Korea’s tender is not expected shortly. However, a tender of 15 thousand tonnes is anticipated in mid-July. Furthermore, new crop arrivals from Tanzania and Mozambique have entered the market, with Tanzania’s mix variety priced between $1850 and $1870 per ton and white sesame commanding prices above $2000. Mozambique’s rate is $1950, while Brazil offers a range of $1500 to $1510.
Eyes on Pakistan
The global sesame industry is closely monitoring Pakistan’s upcoming crop, scheduled for arrival in August. Favorable rains and increased sowing could yield significantly, attracting buyers from Europe, America, and China. In recent years, India’s turmeric oil buyers have diverted their purchases to Pakistan due to favorable conditions and duty exemptions on Pakistani sesame in China. China, therefore, awaits the new sesame crop from Pakistan.
The availability of white sesame remains ample, with four months left for extraction and no immediate concerns of a recession. The crop from Andhra Pradesh, Maharashtra, and Telangana fell short by 10 to 12 thousand tonnes compared to expectations, leaving a remaining crop of 2000 to 2500 tonnes. Gujarat’s exceptional yield of 1.40 to 1.50 million tonnes has surprised the market due to the empty pipeline and increased exports to countries like China, Korea, and Türkiye. Import from Brazil may occur in August, but considering the remaining crop in India and the empty pipeline, a recession in sesame is unlikely. Moreover, new demand will emerge from August to September, potentially creating a favourable market situation.
The market conditions suggest there is no immediate possibility of a recession in the white sesame market, and new demand is anticipated to emerge from August to September.