Indian Sesame Prices Ease Slightly as Monsoon Stays Patchy in Key Belt

Indian sesame prices are drifting slightly lower, with FOB New Delhi offers softening by around 1–2% from early August, while domestic mandi rates remain broadly stable. Weather in major sesame belts of Gujarat and Rajasthan is turning drier, limiting near‑term yield risks but keeping traders cautious about late‑season moisture deficits. Indian sesame is currently trading in a narrow range, with modest week‑on‑week declines across most white hulled and natural grades in New Delhi on both FCA and FOB terms. Export quotations from India are slightly below earlier August levels, maintaining a competitive edge versus origins such as Egypt, where golden natural sesame is holding firm. Domestic wholesale mandi prices across India are stable to mildly softer, indicating balanced pipelines as Kharif crops progress. Patchy monsoon performance in Rajasthan and Saurashtra/Kutch has raised some concern, but recent assessments still point to only localized stress rather than a widespread production shock over the next 1–2 weeks.

Prices

Using an approximate rate of 1 EUR = 90 INR, India’s average wholesale sesame price of about ₹11,850/100 kg on 29 August 2026 equates to roughly EUR 1.32/kg, putting domestic levels slightly below some export offers for premium grades. Recent New Delhi FOB indications for mainstream white hulled and natural sesame are reported around EUR 1.32–1.54/kg, about 1–3% lower than at the start of August, reflecting softer nearby demand and comfortable spot availability.

Price dispersion across Indian mandis is wide, with lows near EUR 0.11/kg and highs exceeding EUR 2.05/kg after conversion, underscoring strong differentiation by quality, moisture and location. Compared with July, the overall August price level is modestly lower, in line with a broader easing trend in Indian oilseeds and steady international sesame supplies. This keeps Indian sesame competitive into key destinations such as China, Russia and Vietnam, which absorbed a significant share of Indian exports in early 2026.

Supply & Demand

India remains one of the world’s largest sesame producers and exporters, with Q1 2026 exports reported near 57,600 tonnes and US$91 million in value, led by shipments to Russia, Vietnam and China. Current export flows appear steady, but buyers are negotiating harder as alternative origins in Africa and the Black Sea compete aggressively on price. Recent trade commentary highlights that Egyptian golden sesame is holding firm, while Indian FOB has softened, indicating buyers are partially switching between origins on relative value.

On the domestic side, mandi data covering 146 markets in nine states shows active arrivals and a broad price band, suggesting adequate near‑term availability. There is no immediate sign of a supply squeeze; instead, traders report comfortable pipelines as Kharif crops advance toward pod‑filling stages. EU agri‑food trade statistics for H1 2026 show rising imports of oilseeds and nuts, which indirectly supports sesame demand in Europe, even if sunflower seed is currently the main focus.

Weather & Crop Conditions (India – Gujarat & Rajasthan Focus)

Weather is a key short‑term driver given the concentration of sesame in Gujarat and Rajasthan. Skymet’s forecast for 28 August–3 September 2026 indicates that hopes for a strong revival of monsoon rains over Gujarat and Rajasthan are fading, with seasonal deficits of about 20–22% in Rajasthan and nearly 29% in Saurashtra and Kutch, even though Gujarat overall still shows a modest surplus. This pattern points to patchy sub‑regional stress rather than a uniform deficit.

Drier weather in the coming days may actually help standing sesame by reducing waterlogging and disease pressure in better‑watered zones, while areas with pronounced deficits—especially parts of West Rajasthan and Saurashtra/Kutch—risk lower pod formation if moisture does not improve later in September. For now, most market participants are not pricing in a major crop loss, but they are closely monitoring rainfall updates for any late‑season shock that could tighten supplies into Q4.

Short‑Term Outlook & Trading Ideas

In the very near term, the combination of softening export offers, stable domestic mandi prices and patchy but not disastrous monsoon conditions points to a broadly range‑bound market with a mild downward bias. International buyers retain bargaining power as alternative origins remain available, and Indian exporters are trimming offers slightly to sustain flows. Weather risks in western India are more likely to show up in pricing later in the season if deficits persist or intensify.

• Importers/Buyers: Use current softness in Indian FOB (EUR ~1.32–1.54/kg) to extend coverage for Q4, but stagger purchases to retain flexibility in case of further easing. Prioritize higher‑spec hulled and EU‑grade material where discounts have widened slightly.
• Indian Exporters: Maintain competitive offers versus Africa and Egypt while guarding margins; consider small price incentives on larger parcels but avoid deep discounts until clearer signals emerge on Gujarat and Rajasthan yield prospects.
• Domestic Traders: With mandi prices near EUR 1.32/kg and no acute shortage visible, short‑term selling into strength on brief rallies looks preferable to aggressive stockpiling, unless weather updates point to a sharp deterioration in western Indian crop conditions.

3‑Day Directional Price View (Region: IN)

Based on current domestic price levels and the latest 28 August–3 September monsoon outlook, only marginal moves are expected over the next three days.

Overall, the sesame market in India is in a mild consolidation phase, with prices easing but not collapsing, and weather‑related supply risks still in the background rather than fully priced in.