Sesame growers advised to sell stocks before March

The sesame growers in the state have been advised to offload their stock before March to get the best rates, as the arrival of sesame is expected to reach its peak during the period between March and July.

The commodity is currently quoted between Rs 28 and Rs 32 per kilo gram. Analysts perceive a price decline post-March.

According to a study conducted by the Domestic and Export Market Intelligence Cell (DEMIC) of the Centre for Agricultural and Rural Development Studies (CARDS), stable demand for sesame oil, good crop prospects and continuous supply of grains from other states signal heavy supply of sesame in the coming months.

"This tends to pull the prices downward although sesame has not recorded wide fluctuations in the past," N Raveendran, Director, CARDS, said in a press release.

Studies show that a good number of sesame growers are small and marginal farmers, who depend on rainfed agriculture. While this group of farmers sell the produce immediately, those with relatively large holdings stock and sell their produce to recover the best possible rate.

Oil millers too purchase during the peak period and store for their yearly requirement. The survey has confirmed that the millers source the produce from other states based on the price and availability.

While this has helped them contain their input cost, growers have never been able to get a better deal, as the crop is harvested in summer and winter, making it available throughout the year.

The total area under sesame cultivation in Tamil Nadu is around 83,835 hectares. This is just about 1.57 per cent of the total cropped area and 8.05 per cent of the total area of cultivation of edible oil crops in the state.

Villupuram, Cuddalore, Karur and Erode are the major sesame growing districts contributing to 51 per cent of the total area in the state and 55 per cent of the sesame production. Productivity is highest in Erode at over 625 kg/hectare.

According to the release, labour alone accounts for about 82 per cent of the cultivation cost followed by fertiliser and manure and seeds.

A study of the price movements between 2002 and 2005 reveals that the rates rose to a level of Rs 3,500 per quintal in mid-2004, from Rs 2,000 in 2002.

The rates slipped to Rs 2,200 in the last quarter of 2005, after hovering at around Rs 3,000 till the first half of 2005.