Damage to Sesame Crops in Pakistan and China, Helping the Indian Sesame Market

Mintec Global
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The position of Indian sesame was weakening in the international market for the last 2 to 3 years, but this season it is expected to become stronger. If the production of Indian sesame increases this season, then the possibility of a hike in Indian sesame will be more.

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Due to heavy rains in Pakistan, 60 to 70 percent of the sesame crop has been completely washed away. The production of sesame in Pakistan was estimated to be 1.50 million tonnes, it will now come down to 50 to 60 thousand tonnes. With Pakistan’s requirement of 15 to 20 thousand tonnes, Pakistan will be able to reduce the export of sesame very less in the new season.

With the heavy heatwave in China for the last 15 days, a drought-like situation has arisen. An unfavorable situation has arisen for the sesame crop in China for the last 40 days but the last 15 days have been very bad. China’s sesame crop was estimated to be 2.25 to 2.50 million tonnes earlier, it will now come down to only one million tonnes. China contributes 25% of the total crop of sesame. Because in the last few years many Hulled units have been established in China.

The new crop of sesame in Nigeria is good as compared to last year and after September 15, the business of new crops of sesame in Nigeria will start. At present, the price of new white sesame seeds of Nigeria in the international market is $1.450 to 1.550 per ton.

With the loss of the sesame crop in China and Pakistan, China will buy more from African countries because it is cheaper to get sesame from African countries due to less import duty to China. With the increase in China’s demand, the price of African sesame will increase in the international market, because of that the price of Indian sesame will also increase in the international market and the new season will be very encouraging for the farmers, traders, and exporters of Indian sesame.

There was a possibility of bumper sowing of sesame in Uttar Pradesh and Madhya Pradesh but the sowing of sesame has not been done as per the assumption. The sowing of sesame has decreased due to an increase in the sowing of groundnut in the Jhansi region of Uttar Pradesh. Sesame seeds have been sown in Uttar Pradesh and Madhya Pradesh in three phases in the current year from June 1 to August 15, due to which new arrivals will start in October, after that the pressure of arrival will not be the same every year. Continuous arrivals will continue till November.  The primary estimate of sesame production in Uttar Pradesh and Madhya Pradesh is 1.60 to 1.70 million tonnes.

In Gujarat, the white sesame crop is estimated to be 15 to 17 thousand tonnes and black sesame to be 10 to 12 thousand tonnes.

Sesame crop condition is weak in Madhya Pradesh, Uttar Pradesh, and Gujarat, the uncertainty of rainfall is likely to reduce yield and quality, especially in Gujarat, heavy rains in Kutch have washed away 4% of the crop.

Experts suggest the primary estimate of the sesame crop is 1.50 to 1.75 million tonnes across the country.

There is no probability of recession in white sesame till the arrival of new sesame seeds because the old stock currently does not exceed 10 to 15 thousand tonnes across the country. Along with that, there is no possibility that India will Import as of now from Africa, as the new crop is about to arrive.

The purchase has been done for a big order that India received in the previous tender from Korea. Within a couple of weeks, the exact situation will be clear about the Indian Sesame crop, therefore at present, it is a wait-and-watch policy by traders in the market. The domestic retail demand for weddings & winter season as well as the export market is expected to begin from the 3rd week of September. 

As analysts state, the market prospects seem more positive considering the overall sesame seeds scenario.

The sesame seeds natural 99.95% sortex prices were recorded at $1,73 per kg FOB.