In the dynamic world of agricultural trade, the sesame market, though niche, plays a significant role. Despite completing its sesame harvest, India faces unexpected market trends. The domestic and international demand for Indian sesame has been lower than anticipated. The kharif production of sesame in India is estimated between 130,000 and 150,000 MT. Comparatively, the overall port stock at Qingdao, China, was approximately 109,397 MT as of 11/12/2023, signifying a significant global supply.
Global Demand Dynamics
The global market is seeing a shift in preferences. China has been importing Tanzanian and Mozambican sesame, known for better yield and color, over other varieties. Nigerian sesame exports reached nearly 50,000 MT, indicating its rising market presence. Sudan is expected to produce 400,000 to 450,000 MT, targeting China, Egypt, Türkiye, and the USA as major export markets.
India’s Export Challenges & Domestic Prices
India’s exports are facing stiff competition, especially from African nations. The specific pricing trends in India as of 05 Dec and 11 Dec 2023, reveal market volatility. Turning to the domestic front, the markets covered include Mundra Port, Gwalior, Gujarat, and West Bengal. The prices for different sesame seed types, such as Hulled, Premium Til White Hulling, and various grades like 99.98%, 99.97%, and 99/1 ranges between 200 to 155. Prices at Mundra Port dropped from USD 2,4 per kg to USD 2,34 or EUR 2,13 per kg within a week. Similarly, in Gwalior, prices fell from USD 2.38 per kg to USD 2,33 per kg or EUR 2,12, and in Gujarat from USD 1,92 per kg to USD 1,86 or EUR 1,69 per kg. This indicates a downward trend in domestic prices, reflecting market pressures.
India’s Export Performance
The leading destinations for exports include the United States, Russia, and Indonesia, among others. The total quantity exported to these countries was 13,533 tons, with a total value of USD 31,580 thousand reflecting a diverse export market for Indian sesame.
A year-on-year comparison of India’s sesame exports reveals a decrease in the quantity exported from 238,165 tons in 2022 to 222,244 tons in 2023, a 6.7% decline. However, the total value of exports showed a marginal increase of 0.4%, from USD 487,333 thousand in 2022 to USD 489,051 thousand in 2023. This indicates a slight increase in the overall value realization despite a drop in quantity, possibly due to better pricing or a change in export destinations.
India’s Sesame Oil Export Dynamics
India’s sesame oil exports have shown notable trends in 2023. The country-wise export data for November 2023 highlights the key destinations for Indian sesame oil. The major importers include Vietnam, Taiwan, the United States, Italy, the UAE, the United Kingdom, Germany, Canada, among others. The total volume exported in November was 510 metric tonnes (MT), amounting to a value of USD 2,445 thousand, with an average price of 4,793 USD/MT.
Expert Opinion
The year 2023 has been significant for India’s sesame market, marked by a robust export sector for sesame oil and a vibrant domestic market for sesame seeds. India’s sesame market is at a critical juncture. The country needs to navigate through evolving global preferences and intensifying competition. With a focus on quality enhancement and strategic market adaptation, India can leverage its production capacity to maintain a strong presence in the global sesame trade.
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