Market Impact: High Prices Dampen International Demand for Indian Sesame - Sesame Industry: Navigating Challenges and Price Fluctuations Affecting Market Sentiments

Insights and Anticipation Of Sesame Market Anticipated Surge in Sesame Prices Due To Reduced Cultivation Area and Supply Shortfall

Mintec Global
Spread the news!

Sesame prices are poised to set sail on an upward trajectory, riding the waves of lower cultivation areas and potential supply shortages. Through its TN-IAM Project funded Price Forecasting Scheme, the Centre for Agricultural and Rural Development Studies, Tamil Nadu Agricultural University, Coimbatore, foresees a rise in sesame prices. However, this forecast is not cast in stone, and market shifts may occur based on the caprices of the monsoon and arrivals from other crucial sesame-producing regions.

Unicaps Sunflower seeds

Anchoring Predictions in Past Tides

The price forecasting team has anchored its predictions by analyzing the market tides of the past 12 years for this oilseed, specifically in the Sivagiri Regulated Market of the Erode district. The forecast indicates that during the harvest season in April, the farmgate price for good-quality sesame is expected to range between $2,04 – 2,11 or €1,88 -1,93 per kg.

Sowing Seeds of Change – Factors Influencing Sesame Prices

A significant factor contributing to the anticipated surge in sesame prices is the reduction in cultivation area during the rabi crop. The Crop Forecast Coordination Centre (CFCC) estimates a decline in kharif cultivation from 1.344 million hectares in 2022-23 to 1.243 million hectares in 2023-24. Furthermore, the rabi season is expected to witness a decrease. This reduction in acreage, coupled with supply shortages due to heavy rainfall, sets the stage for an upward trajectory in sesame prices.

India’s Role in Global Seas

India, the world’s second-largest sesame producer, following only Sudan, plays a pivotal role in the global seascape of sesame. Additionally, it is the largest exporter of sesame, with significant shipments destined for the United States, Vietnam, and Russia. Sesame cultivation spans India’s kharif and rabi seasons, with crucial producing states including West Bengal, Gujarat, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Tamil Nadu.

Tamil Nadu’s Contribution to the Sesame

Tamil Nadu, a significant contributor to India’s sesame production, cultivated approximately 0.279 million tonnes from 0.47 million hectares in 2021-22. Noteworthy districts, commanding 66% of the area and 65% of the state’s sesame production, include Villupuram, Thanjavur, Erode, Karur, Cuddalore, Salem, Thiruvannamalai, and Thiruvallur. Tamil Nadu’s sesame production stands out for its high productivity.

As global exporters prepare to guide the sesame seas, the predictions of rising prices underscore the need for strategic decision-making. However, exporters must remain vigilant, as market movements are susceptible to the unpredictable whims of weather patterns and arrivals from other sesame-producing regions.

Import/Export Statistics

Please click to reach our Marketplace