Unveiling India's Strategic Play in the Global Sesame Market: A Weekly Update

Sesame Weekly Report – First Week of December

Mintec Global
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Harvesting and Market Dynamics

India’s sesame harvest is largely complete, marking a significant phase in its agricultural calendar. The crop’s entry into the market has been substantial, yet it is faced with low demand both domestically and internationally. This subdued demand can be attributed to India’s higher sesame prices compared to other global suppliers. This pricing dynamic is a critical factor influencing India’s export competitiveness and domestic market balance.

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Market Arrivals and Pricing Trends

Daily arrivals of sesame seeds in the mandis of Uttar Pradesh and Madhya Pradesh, key sesame-producing regions in India, are reported to be around 5-6 thousand bags. This level of market arrival is indicative of the supply flow and the current state of demand and pricing within the domestic market. The pricing trends in these mandis provide insight into the broader market sentiment and potential future price movements.

Import Projections and Trade Policy

Looking forward, India is poised to increase its imports, with an estimated additional volume of 30,000 metric tonnes (MT) expected by March 2024. This projection is a critical indicator of India’s market needs and its positioning in the global sesame trade. The import policy and tariff structure that India adopts in this context will significantly influence these trade flows.

Global Sesame Market Overview

China’s Market and Import Dynamics

China holds a significant position in the global sesame market, both as a consumer and an importer. The country’s stocks, heavily sourced from Pakistan, showcase stable imported sesame prices, though these vary based on quality. With an overall port stock of about 115,353 MT, China’s import patterns, particularly from countries like Pakistan, Tanzania, and Mozambique, are pivotal in shaping the global sesame trade.

African Producers – Burkina Faso and Chad

Burkina Faso’s sesame crop, with an anticipated size between 150,000 to 160,000 MT, shows a quality improvement compared to the previous year. Chad, another significant African producer, expects a larger crop size this year, with an increased quantity of red sesame. These African nations are increasingly important in the global sesame market, with China and Türkiye being major export destinations.

Ethiopia’s Market Positioning

Ethiopia is a key player in the market, with projected production between 220,000 to 240,000 MT. The country has increased its sowing area, indicating a strategic move to boost production. The stock left from the previous season, approximately 20,000 MT, also plays a role in Ethiopia’s market dynamics.

Comprehensive International Market Analysis

India’s Global Standing

In the international market, India faces challenges due to reduced demand for its sesame seeds, primarily driven by its higher pricing relative to competitors. Understanding India’s position requires analyzing its competitive advantages, market strategies, and the quality of sesame seeds produced.

Global Pricing Dynamics

The report provides an extensive analysis of international pricing trends, offering insights into how various countries, including India, are positioning their sesame seeds in the global market. These trends are crucial for understanding the competitiveness of Indian sesame seeds.

Import-Export Data and Trends

Detailed tables and data in the report present a thorough analysis of international offers, import trends in key markets like Türkiye and Japan, and specific pricing information for various types of seeds from different countries. This data is vital for stakeholders to understand the flow of sesame seeds in the global market and to strategize accordingly.

Conclusion

Despite the completion of its sesame harvest, India faces challenges in the global market due to higher domestic prices, leading to lower demand both locally and internationally. To address its market needs, India is projected to import an additional 30,000 metric tonnes of sesame by March 2024. This situation underlines the delicate balance India must maintain between its domestic production capabilities and the dynamics of the global sesame market.

Import/Export Statistics

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