The Indian Sesame Seed Market: Competitive Pressures and Domestic Demand Challenges
The sesame seed market in India has experienced significant shifts, primarily due to competition and changing domestic and international demands. As of late 2023, Indian hulled sesame faces tough competition from cheaper alternatives from Pakistan, Türkiye and Nigeria. This competition has led to a decrease in demand for Indian hulled sesame, impacting its market position.
Additionally, India’s domestic demand for white sesame has been lower than anticipated. This decrease is attributed to a delayed winter and insufficient export demand for both natural and hulled sesame. Despite these challenges, India remains a key player in the sesame seed market, having imported around 90,000 metric tons (MT) of sesame from January to October 2023, with substantial quantities sourced from Brazil, Somalia, Sudan, Burkina Faso, and Nigeria.
Regional Variations and Key Players Shaping the International Sesame Market
The international sesame seed market is witnessing varied trends across different regions. In China, for example, logistical disruptions caused by heavy snowfall in North China and shipping challenges from Sudan have influenced the market. This has led to a rise in sesame seed prices, with Pakistan’s cargo facing financial losses.
Nigeria, a major sesame seed producer, has exported about 60,000 MT, with Türkiye, Japan, and China as major destinations. In Pakistan, the export season for natural sesame seeds is concluding, with primary export destinations being China, Korea, and Türkiye. Chad, another important player, estimates its crop size at about 75,000 to 80,000 MT, with Türkiye being the primary buyer.
Role of Major Exporting Countries in The Sesame Seed Market
Export trends in the sesame seed market reveal significant insights. Nigeria, with an anticipated crop size of 320,000 to 350,000 MT, has emerged as a vital exporter. Türkiye, Japan, and China are major destinations for Nigerian sesame, and India is also expected to import a significant quantity this season.
Pakistan’s sesame seed export is nearing its end, with about 3,000 MT exported from December 1st to the date of the report. Chad, with a slightly lower yield due to earlier harvesting and quality variations, continues to be a significant exporter, particularly to Türkiye.
India’s imports from Nigeria, as well as other countries, signify its role not just as a producer but also as a key importer in the global sesame market. The fluctuation in export prices and quantities across different countries highlights the dynamic nature of the global sesame seed market.
Conclusion
The sesame seed market showcases a complex interplay of regional production, export dynamics, and global demand. India’s position, while challenged by competition, remains significant due to its role as both a producer and an importer. Internationally, countries like Nigeria, Pakistan, and Chad continue to influence the market through their export activities. The sesame seed market, thus, reflects a vibrant and evolving sector with diverse contributors shaping its trajectory.
