Sesame Seeds Update 16.12.24
Indian sesame seed farmers have made significant progress this season, harvesting approximately 80% of their crop. The Kharif harvest is projected to yield between 140,000 and 150,000 metric tons. This reflects a reasonable output given the challenges faced during the growing season. Early in the cycle, favourable conditions had raised hopes for an even higher yield. However, unseasonal rainfall in major sesame-growing states disrupted growth and harvesting processes, leading to reduced yields in several areas. As of now, between 75% and 85% of the crop has been collected. This signals that the harvest is nearing completion despite these setbacks.
The international sesame seed market has also been active, with India playing a key role in recent tenders. In the latest tender, both India and Nigeria secured significant allocations, underlining their strong presence in the global sesame trade. Nigeria secured 1,500 metric tons in the first tender position, while India successfully obtained 1,800 metric tons in the second position, highlighting its competitiveness in the export market. The shipments from these tenders should arrive at the port of Busan, South Korea, by February 2025. India's ongoing efforts to maintain a robust export pipeline shine through here.
In the Future
Looking ahead, another tender is expected next week, presenting an additional opportunity for Indian exporters to strengthen their market share. While the specifics of this tender remain unknown, market participants are hopeful for conditions that could favour Indian suppliers, particularly in light of the strong Kharif output. The upcoming tender is being closely watched as it may provide critical insights into pricing trends and future demand from South Korea and other importing nations.
As the year draws to a close, South Korea remains a vital market for Indian sesame seeds. Despite a general decline in sesame imports to the country, sustained demand is likely to benefit Indian exporters. The Kharif harvest's relatively high estimates suggest that India should have sufficient supply to meet both domestic and export needs. However, the impact of erratic weather remains a concern, with farmers and exporters alike wary of potential fluctuations in prices.
Market sentiment remains cautiously optimistic. This is driven by expectations of a modest price increase due to growing domestic demand and the prospects of the upcoming tender. Indian exporters are also banking on increased global recognition of their sesame seed quality, which could help them secure larger orders in future tenders. As global demand continues to evolve, the interplay between domestic consumption and international trade will play a crucial role in shaping the fortunes of Indian sesame seed farmers and exporters.