News

Anala Rajkot

Aug 23, 2024

Sesame Market Weekly Update - 20th August 2024

Sesame Market Weekly Update - 20th August 2024

This week, Indian sesame prices have shown a slight decrease.
  • white sesame in Gujarat was priced between $1,98 to $1,99 per kilogram.
  • In Gwalior, white sesame prices were between $1,54 to $1,56 per kilogram.
  • Compared to last week, these prices have shown minor fluctuations due to ongoing Kharif sowing activities.
The sowing area has reduced to 1.01 million hectares from 1.11 million hectares last year, reflecting a decrease in planting efforts. This reduction stems from persistent low prices and repeated crop failures, discouraging farmers from expanding their sowing areas.

India's sesame stock is currently estimated to be between 15,000 to 20,000 metric tons, consistent with last week's figures. Weekly arrivals have also remained steady with;
  • Gujarat reporting arrivals between 10,000 to 12,000 bags (approximately 600 to 720 metric tons),
  • West Bengal receiving 4,000 to 5,000 bags (approximately 240 to 300 metric tons),
  • Andhra Pradesh seeing lower arrivals of 500 to 600 bags (approximately 30 to 36 metric tons) weekly.

Impact of Brazilian and Pakistani Sesame Imports on Indian Market

India is expected to import around 50,000 metric tons of sesame from Brazil this year, a significant increase from last year's imports of 35,000 to 40,000 metric tons. These imports are driven by lower global sesame prices and rising domestic demand. Brazilian sesame, priced between $1,50 to $1,55 per kg, is anticipated to arrive by the end of August, potentially stabilizing or further reducing local prices.

In Pakistan, the impact of recent heavy rains on sesame crops continues to unfold. Last week, early reports indicated potential damage, and this week confirms lower-than-expected arrivals with compromised quality. However, better quality produce is expected to start arriving by early September by maintaining the anticipation of improvement in the coming weeks.

Market Stability with Potential Price Adjustments

This week's prices for white sesame in India are around $1,98 to $1,99 per kg, a slight decrease from last week's range of $2,00 to $2,02 per kg. The market remains resilient despite low demand, with the upcoming monsoon crop expected to maintain or slightly increase prices.

International demand, particularly from China, continues to be a crucial factor. As of August 16th, 2024, China's Qingdao port holds approximately 153,800 metric tons of sesame, a slight increase from last week. The expected arrivals from key production areas in Hubei and Henan next week could further influence the market.

Conclusion

The Indian sesame market continues to show stability with minor price fluctuations influenced by both domestic and global demand. The comparison with last week shows consistent trends. With the expected Brazilian imports and the upcoming monsoon crop playing significant roles in determining future price trends. While prices are not expected to decline significantly, a slight increase could occur if demand strengthens.
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