Indian Sesame Edges Higher on Korea Tender Talk and Slow Kharif Sowing

Indian sesame prices are firming, with EU‑grade hulled FOB New Delhi up around 6–7% over the last two weeks, supported by expectations of a fresh South Korean tender and still‑limited farmer selling. With Kharif sesame sowing lagging last year and monsoon progress uneven across western oilseed belts, nearby price risks are skewed mildly to the upside. The sesame market remains fundamentally well supplied, but short‑term sentiment has turned supportive. A new Korean import tender expected in July is already underpinning offers from Indian exporters, even as overall export volumes lag last season. At the same time, early Kharif 2026 oilseed sowing, including sesame, is below last year’s pace, as farmers wait for more dependable rainfall in key states. Short‑term Delhi weather looks seasonally wet but not disruptive, keeping logistics smooth while leaving the production risk tied mainly to monsoon performance in Rajasthan and Gujarat in the coming weeks.

Prices

Indian sesame prices are quoted in EUR equivalents using an indicative rate of 1 USD ≈ 0.92 EUR.

FOB New Delhi EU‑grade hulled sesame is trading close to the upper bound of the Q2 range cited by international price trackers (roughly EUR 1.35–1.55/kg equivalent), reflecting the recent uptick driven by tender expectations and modest farmer holding.

Supply, Demand & Monsoon Context

Market reports from New Delhi highlight that India’s sesame exports are currently below last year’s levels, even as another South Korean tender anticipated for July is lending support to prices. Trading is described as moderate, with both domestic and overseas demand limited but selectively responsive to tender news.

On the supply side, official sowing data indicate that Kharif 2026 sesame acreage had reached about 15,000 ha by mid‑June, versus 19,000 ha at the same time last year, implying a roughly 20% lag. Recent agrometeorological bulletins confirm that oilseeds as a group are behind last year’s pace, as many farmers delay sowing until the monsoon becomes more reliable.

The southwest monsoon has advanced across much of central and northern India, with the IMD noting further progress into Gujarat, Madhya Pradesh, Uttar Pradesh, Haryana–Delhi and Punjab, but also signalling likely below‑normal rainfall over West Rajasthan in late June and early July. Since Rajasthan and Gujarat are key sesame belts, sustained rainfall deficits there through July would pose upside risk to yield expectations and new‑crop availability.

Domestic spot markets are reflecting this tension between comfortable old‑crop availability and weather‑dependent new‑crop prospects. For example, modal sesame prices at Gujarat’s Bhavnagar APMC were around INR 12,595/quintal on 1 July 2026, well above the MSP, underlining firm farmer realisations despite the broader narrative of adequate global supply.

Weather & Logistics Snapshot (Region: IN)

For the key trading hub of New Delhi, short‑term forecasts from the IMD and private providers point to typical monsoon conditions over 2–5 July: maximum temperatures around 33–34°C, minimums near 26–28°C, with generally cloudy skies and intermittent showers rather than prolonged disruptive downpours.

Nationally, IMD bulletins and agri‑weather advisories suggest that while monsoon coverage is expanding, rainfall distribution remains uneven, with a risk of deficit showers over parts of Rajasthan in the first half of July. This pattern supports normal port logistics and mandi arrivals in the immediate term but keeps production risk elevated for rain‑fed sesame in western India if deficits persist.

Key Fundamentals & Risk Factors

• Korean tender expectations: Market intelligence points to another South Korean sesame tender in July, already lifting sentiment and prompting firmer offer levels from Indian exporters, even with current export volumes trailing last year.
• Comfortable but origin‑sensitive global supply: Earlier Q2 assessments describe the global sesame balance as broadly comfortable, yet highlight heightened origin‑specific risk for Indian shipments into the EU and Japan due to food‑safety compliance (e.g. ethylene oxide, microbiological criteria), which can restrict accessible demand and segment pricing.
• Delayed Kharif sowing: Oilseed sowing, including sesame, is behind last year’s pace as farmers wait on more secure monsoon patterns, particularly in western states. This adds a weather‑premium to forward values, especially if rainfall deficits in Rajasthan and adjoining areas extend deeper into July.
• Domestic price floor: Strong mandi prices in Gujarat and other key centres, significantly above MSP, are providing a floor under farmgate values and discouraging aggressive selling, which in turn supports FOB offers from interior origins such as New Delhi.

Trading Outlook (Next 1–2 Weeks)

• For importers (EU, Korea, Middle East): Near‑term risk is for slightly higher Indian offers if the anticipated Korean tender is confirmed and monsoon worries in Rajasthan intensify. Consider securing part of Q3 coverage now for EU‑grade hulled at current levels, keeping some flexibility to switch origins (e.g. Africa) if Indian compliance or weather risks escalate.
• For Indian exporters: With exports below last year and tender‑driven demand supporting prices, a measured selling strategy is advisable: lock in firm inquiries for July–August shipment while avoiding over‑commitment until sowing progress in western India is clearer by mid‑July.
• For processors & domestic buyers: Given firm mandi prices and modest upside risk, staggered buying on dips rather than heavy front‑loading appears prudent, especially for non‑EU destinations less exposed to residue‑compliance constraints.

3‑Day Directional Price Outlook (Region: IN)

• New Delhi FOB, hulled EU‑grade white: Mildly bullish bias over the next three days, with offers expected to hold firm or edge up by up to 1–2% on Korean tender speculation and steady local mandi prices.
• New Delhi FCA, natural white: Steady to slightly firm, supported by farmer holding and seasonally tight spot arrivals ahead of clearer Kharif acreage signals.
• New Delhi FOB/FCA, black sesame (regular & Z‑grades): Largely sideways with a slight soft tone as recent premiums may attract some profit‑taking; downside limited by overall oilseed complex support and monsoon‑related uncertainty.