Pakistan’s Bumper Sesame Crop May Impact International Sesame Prices Old stocks of sesame are very low in major sesame markets

Mintec Global
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The second phase crop of Pakistan and crops of African countries including Sudan, Ethiopia, Burkina Faso will come in the market in November-December. The sesame crop of Tanzania and Mozambique was less this season and now this crop is almost over.

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Tension is increasing between America and China over the Taiwan issue. If this stress increases which might cause a change in China’s demand and might have a big impact on the sesame market. China is the largest buyer of sesame in the whole world, if the current situation affects the purchase of China, its effect can be seen in the sesame market of the whole world. At present Pakistan’s crop plays a crucial role in determining the price of sesame in the international market. In the international market, the price of white sesame from African countries is 1.650 to 1.000 dollars per ton. In comparison, Pakistan’s sesame price is currently $1.550 per ton. This price is likely to decrease to 1.450 dollars after the start of a new sesame seed crop in Pakistan. The price of Indian sesame seeds in the international market is currently 1.600 dollars per ton of Natural White 99-1-1 variety.

Short-term sesame prices will remain rangebound according to the current scenario of the overall domestic and international conditions. If the Korean tender goes in India’s favor and the condition of the Kharif crop deteriorates, there is a possibility of a big boom in sesame.

The second phase crop of Pakistan and crops of African countries including Sudan, Ethiopia, and Burkina Faso will come into the market in November-December. The sesame crop of Tanzania and Mozambique was reduced and now this crop is over.

Sesame cultivation is estimated to have increased by 10 to 15 percent in Uttar Pradesh and Madhya Pradesh this year due to the late onset of monsoon and the area of ​​groundnut, maize, millet, pulses, and paddy being diverted to sesame. As the monsoon started after the month of July was half over, the farmers were left with no option but to plant sesame seeds.

In Uttar Pradesh and Madhya Pradesh this year, sesame has been planted at every stage, so the new crop will not come at the same time. After the late start of the new crop of Sesame, there will be cut-cut stock which will last till 15th November.

Sesame production in Rajasthan has increased due to timely and good rainfall in all areas. The soil type of Rajasthan is suitable for heavy rains, although there is heavy rain this year, there is no possibility of damage to the sesame crop, so the sesame crop in Rajasthan will also increase from last year.

Sesame cultivation in Uttar Pradesh, Madhya Pradesh and Rajasthan will not happen this year after the new revenue starts, so the price of sesame will not fall because none of the 50 mandis of Uttar Pradesh-Madhya Pradesh currently have stock of old sesame and none of the factories of these two states have any stock of sesame. Even in Rajasthan, the stock of sesame is not visible, before the new revenue of sesame started last year, the carry forward stock was large and there was parity for imports, so the imported quantity was also coming and the supply of summer crop in Gujarat was also continuing which is very low this year.

The old stock of sesame in the country is currently very low. There is no parity for imports so when the new season starts there will be a huge simultaneous purchase of sesame as pipelines across the country are empty.

Sesame prices will remain stable to strong now considering the stock situation in the sesame market.