The Sesame market of India is highly volatile at the moment. There are many reasons for that, however to sum up the main reasons are as below:
- Import duty levied on import of edible oils & oilseeds
- Heavy rain fall & floods in the Sesame producing regions of India
- Less arrival of the crop till date
One of the major reasons for the Sesame price rise is the increased import duty on import of oils & oil seeds. The GOI has increased the import duty so as to boost domestic oil seeds consumption. This has led to drastic rise in the demand for oil seeds in the domestic market. Also, the global demand is on the rise every year & so the Indian markets have noticed a sudden rise in the prices for all the oil seeds.
In case of the sesame seeds, the new crop is still arriving in the market. The estimated crop yield for the year 2017-18 is 455 Million Metric Tonne against the production of 525 Million metric tonne last year. This is much lesser than the expected crop this year & is an outcome of heavy rainfall & floods in the Sesame seeds producing regions of India. Out of the estimated figure of 455 Million MT, much lesser crop has arrived in the market & a lot is still expected, whereas the demand is higher on both the domestic & global front. The suppliers have already committed forward contracts, but there is not enough arrival to fulfill further demands. This has risen the prices for Sesame Seeds drastically.
In addition to this, the Korean tender for 3900 Tonne of Sesame seeds just arrived in the Indian market. Though this did not prompt further increase in the prices, but it may not allow the market to stabilize soon.
The market prices for Sesame seeds are likely to stabilize around December end after the gap in demand and supply is bridged & the estimated crop arrives in the market. Only then the clear picture on the pricing for Indian Sesame can be seen.