Market experts believe that there will be a rise in the price of both white and black sesame seeds in the coming months. White sesame seeds will improve to $1,29 – $1,42 per kg, while black sesame seeds will increase between $1,68 and $1,77 per kg.
Current Scenario
The summer sesame yield in Gujarat is expected to be between 150 thousand and 160 thousand tonnes. Also, the summer crop is likely to be of high quality and maybe the best in the last eight to ten years.
Some local traders earlier believed that the extreme heat the growing regions have faced could have impacted the product negatively. However, till now, the new crop that is arriving in the market is not of low quality. It hence indicates the hot weather has not impacted the summer crop.
Last year, despite the storm the sesame growing areas faced, there was a bumper yield.
The expected output was between 165 thousand and 175 thousand tonnes last year. But experts believe it could have been about 200 thousand tonnes too.
Sesame Production
This year out of the 150 thousand 160 thousand tonnes of sesame production in Gujarat, the expected output of black sesame is about 15 thousand to 18 thousand tonnes. The black sesame seeds account for both zed black and regular black sesame. However, the production quantity does not take into account the seeds that are produced for crushing.
The expected production of brown sesame in West Bengal is between 50 and 60 percent. According to government data, production is expected to be good and will range between 125 thousand to 150 thousand tonnes.
The summer sesame seeds of Telangana and Andhra Pradesh started reaching the market at the end of April. An estimated 50 percent of the products have already reached the market. The region has produced 20 thousand tonnes of brown sesame seeds with 30 thousand tonnes of white sesame seeds.
Korean Tender
India received the tender from Korea to fulfill 12 thousand tonnes of the product. Out of this, currently, India is shipping 4000 tonnes.
The next phase of the shipment will be between June and July for 8 thousand tonnes. Therefore, about 70 percent of the purchase for this shipment by the exporters have been made.
Another new tender from Korea for 12 thousand tonnes is expected in June-July. It means India must fulfill about 24 tonnes of the Korean demand for sesame seed from the summer crop.
Role of Tanzania & Mozambique
In the world sesame market, the arrival of new crops has started in Tanzania and Mozambique. As a result, the products’ prices in these two countries range between $1,45 and $ 1,50 per kg. Compared to this price, the Indian sesame seeds are quoted to be about $1,47 per kg in the international market.
China does not have to pay any tax for importing sesame seeds from African countries. However, China must pay a 9 percent duty to buy the sesame from India. Hence, China will purchase from India only if and when the crop prices drop. However, it is believed even if China waits for the price drop, Egypt, Turkey, and Iran can place some limited import demand from India.
Future
The expected tender from Korea and the import demands from other countries will support the price of the summer sesame seeds in the next couple of months.
The price for black sesame in the next two months is expected to stay between $1,68 and $1,77 per kg.
The Indian Government is taking some steps to combat the inflation rate. It can eventually result in a decrease in the sesame seeds that are purchased for crushing.
Also, including China, other countries are still facing lock-downs due to the Coronavirus. As a result, the purchase of sesame is limited and expected to be so for the next couple of months, which will impact the price improvement.
The new crop of sesame seeds in Brazil will start arriving in July. With China’s help, Pakistan has increased the seed’s overall sowing. Both these countries, as a result, will challenge India’s sesame seed export.
Price Trend
The white sesame seed was reported to be $1,39 per kg, then reduced to $1,33. Market experts believe with the increase in the arrival of the summer crop. The price can decline to $1,31 per kg.
The current price of zed black is $1,82 per kg. Earlier, there was good market activity when the commodity price was between $1,71 and $1,74. However, there is not much purchase of the Indian black variety sesame in the world market.
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