Current Challenge – Weather Hinders Kharif Season
Along with impressive growth, the sesame industry confronts a formidable challenge due to adverse weather conditions, which have hindered the promising sowing of Kharif season sesame crops. As the season draws to a close and stockpiles diminish, the sector braces for a period of stagnation until fresh supplies materialize.
Sowing Stagnation – Disheartening Trends
Official data from the Ministry of Agriculture presents a sobering picture, indicating that Kharif sesame cultivation across India had plateaued at 11.52 million hectares by August 18. This figure is a stark contrast to the 12.56 million hectares sown at the same time the previous year, underscoring a concerning decline in the sown area. While there has been a slight uptick since May 19 when summer sesame cultivation reached 4.61 million hectares (compared to 4.51 million hectares the previous year), a significant deficit persists.
The Potential for Growth
The industry’s growth prospects hinge significantly on favorable weather conditions. A surge in production remains possible, contingent on meteorological factors. Reports from the Gujraj Agriculture Directorate reveal that as of August 14, sesame cultivation in the state covered 56,823 hectares, a decrease from the 68,807 hectares sown during the same period the previous year. Despite the challenges, traders cautiously hold optimism about Kharif sowing, with production estimates hovering around 75,000 tonnes.
Market Dynamics, Price Fluctuations and Market Sentiments
Exporters have remained steadfast in their procurement activities despite the unpredictable weather, leading to a substantial increase in the price of premium Halding-quality sesame, which now trades at approximately $2,69 to $2.70 per kilogram in Gwalior. Natural sesame, on the other hand, is priced at around $2,48 to $2,49 per kilogram in other producer markets of Madhya Pradesh, including Chhatarpur and Naugaon, as well as Uttar Pradesh. Gwalior’s Halding-quality sesame currently commands roughly $2,70 to $2,73 per kilogram, marking a notable rise from the $1.89 to $1.91 per kilogram rate during the same period the previous year.
Additionally, the sesame oil market has experienced fluctuations, with prices currently settling at approximately $3,35 per kg after previously surpassing $3,664 per kg. Despite these market dynamics, experts anticipate steady demand for new commodities in the market, both domestically and internationally, albeit with a degree of sluggishness until the harvest season begins. However, the market remains cautious about adopting a bullish outlook due to the uncertain interplay between bearish and bullish factors.
The sesame industry grapples with adverse weather conditions affecting production, all while price fluctuations underscore the cautious market sentiment.
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