Summer Sesame Crop Estimated Higher
The summer sesame crop in Gujarat is estimated to be 100,000 tonnes this year. Out of this, 65,000 tonnes have already been harvested, and 35,000 tonnes are yet to be harvested. Approximately 20,000 tonnes of sesame are expected to be harvested in June, while 15,000 tonnes, currently held by large farmers and small traders, will reach the market gradually.
The monsoon is expected to begin in Gujarat soon, which will reduce the influx of sesame. Moreover, monsoon sowing is likely to be less this year, and the La Niña forecast suggests that heavy rains might damage the sesame crop. At the start of the season, summer white sesame prices opened between $1,80 and $1,81 per kg, dropping to $1,68 per kg and now stabilizing at $1,72 per kg. Prices are unlikely to fall below $1,68 – $1,70 per kg.
Decreased Export and Raw Material Demand
This year, the export of white sesame is expected to decrease, with the raw material requirement around 17,000 tonnes per month, down from 20,000 tonnes last year. A total of 51,000 tonnes of sesame will be needed for July, August, and September. Sesame imports are also expected to decline by 50%, with total annual imports estimated at 60,000 tonnes, compared to 120,000 tonnes last year. Sudan has shown more strength in the market, and traders are cautious about importing sesame from Nigeria, with expected imports barely reaching 5,000 tonnes this year, down from 25,000-30,000 tonnes last year.
Looking at the overall supply, the previous year saw a total supply of 480,000 tonnes of sesame, including 145,000 tonnes from the summer crop, 165,000 tonnes from the Kharif crop, 120,000 tonnes from imports, and 50,000 tonnes from Bengal and Andhra Pradesh. This total does not account for sesame used for crushing, only the directly consumed crop. Comparatively, 220,000 tonnes were exported, 50,000 tonnes were used for turmeric and natural shortex, and about 190,000 tonnes were consumed locally.
Import Trade and Price Stability
The import trade of white sesame has grown due to reduced Brazilian sesame prices, expected to reach India in August. Imported sesame seeds are mostly used for hulling. Imports will depend on Indian sesame prices in August. With potential exports to China or other countries if prices are low.
White sesame prices are strong, with demand from stockists. Export demand is currently low because sesame from other countries is cheaper than India’s. Pakistan’s sesame is priced at $1,46 – $1,47 per kg, and Brazil’s at $1,40 per kg.
Brazil’s sesame import trade has improved, with 25,000-30,000 tonnes traded. Shipments will start in mid-July, with arrivals expected in August-September. Export demand for sesame is low, except from Korea. Another tender for five thousand tonnes is expected soon. Monsoon sowing of sesame has decreased, with more rain forecasted this year. Former sesame-growing areas in MP and UP are now used for peanut cultivation.