Sesame prices increased by over Rs 225-250 per 20 kg or 18 per cent in past four days in the wake of upcoming South Korean tender for 12,000 tonnes. Exporters are learnt to have been creating stock for the upcoming tender.
"Sesame market has increased prices by almost Rs 200-250 per 20 kg in last four days as exporters are buying heavily to create stock for coming 12,000 tonnes South Korean tender for the commodity. However, this is a momentary rise and is likely to decline soon," said Chirag Adhiya of Dalal Shantilal Narandas from Rajkot.
Sesame was traded on Rs 1,600-1,650 per 20 kg on Saturday in various mandis of Gujarat as against Rs 1,375-1,400 per 20 kg on Wednesday. Hulled sorted sesame seed prices stood at Rs 1,800-1,900 per 20 kg.
The South Korean tender of 12,000 tonnes will open on 13th July.
A leading commodity broker from Saurashtra said, "The sesame market is being driven by export demand as this time the tender size is double than last time. Moreover summer sesame crop is expected to be lower than last time which obviously resulted in price rise. However, price will not gain much in coming days."
Add to the woes, Daily arrival of sesame seed in Gujarat has fallen drastically from 25,000-27,000 bags last month to around 8,000-9,000 bags now.
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Previously, Korean tender opened on May 16 this year. Generally Korean tender order distributes mostly in India wherein most of the order are fulfilled by exporters from Gujarat. With the sesame market expecting a full order of 12,000 tonnes in India this time, prices have gone up.
"To fulfill export order of 12,000 tonnes, around 13,000-13,500 tonnes of sesame seed is required and to cover this amount exporters are buying aggressively right now," said Adhiya.
According to Solvent Extractors Association of India (SEA) data, sesame seed price is ruling higher by 47 per cent as compared to corresponding period last year. In July 2011, average price of sesame seed hovered at around Rs 51,337 a tonne while currently it is being traded at Rs 75,000 per tonne.
According to Indian Oilseed and Produce Export Promotion Council (IOPEPC), sesame production is also estimated to be higher by over 10 per cent. IOPEPC has estimated around 52,200 tonnes of sesame production this summer, up from 47,500 tonnes in last year.