Sesamum acreage shrinks in Gujarat

With sesamum seed production in Gujarat likely to shrink further this season, the price of the commodity is likely to go up when the current crop arrives later in the year. According to traders, the area under sesamum has decreased by almost half compared with the last year's figures. The government figures also give a similar picture.

However, with the export demand for sesamum seed and oil growing by almost 20 per cent annually, prices are expected to go up in the future.

"Sesamum sowing in the state has been poor this year. Compared with last year, only 50 per cent of the area has been sown with the kharif season coming to a close. This would mean lesser output this year. The total sesamum acreage last year was around 3.5 lakh hectares across the state, with a major portion in Saurashtra region. This year it may remain between 2 to 2.5 lakh hectares," said Monik Vora, a Rajkot-based broker and trader of commodities.

Vora attributed the decline to excessive rains over the last three years as the crop was highly sensitive to the rains. With sesamum prices coming down, farmers were shifting towards BT cotton and groundnut, which fetched higher prices, he said. The total area under sesamum, according to him, had come down from almost 4 lakh hectares in 2005 to 3.5 lakh hectares in 2006 and was likely to decrease even more this year.

The latest sowing figures released by the state government also suggest a decline in acreage. According to figures provided by the department of agriculture and co-operation, Gujarat, the acreage under the crop stood at 2,41,500 hectares on July 16 compared with 3,00,100 hectares last year. The average acreage of sesamum over the last three years was 3, 63,100 hectares in the state. With the sowing season coming to a close by the end of this month, this target is unlikely to be met.

"The acreage of sesamum will go down by around one lakh hectares. Along with the heavy rains experienced last month, which flooded many areas in Saurashtra, production is likely to suffer. Sesamum was recently sown and the crop had suffered damage in many areas. This will result in lower output this year," said an official of the department of agriculture and co-operation.

"This may mean that by September, when the sesamum crop arrives, prices may get stronger by 5 to 7 percent from the current prices of Rs 825-830 per 20 kg. The old stock is being sold at Rs 805 to Rs 810," said a trader from Rajkot.

Speaking on the output, Mukesh Chawla, director, Sun Shine Tilli Works, a Sanand-based sesamum seeds exports company, said, "Last year, the state had produced around 60,000 tonnes of sesamum seeds. The demand for sesamum is increasing every year from Europe and West Asia. The annual growth in demand is around 15 to 20 per cent."

Meanwhile, sesamum sowing in Rajasthan is progressing well and traders expect a good crop this season.

However, traders fear a fall in prices if the production is good. "Sesamum sowing in Jodhpur and the adjoining region has progressed well. If the state receives another spell of rain then the production will be good this year. This may result in a minor fall in prices. However, the trend may not last long as there is no carry forward stock of sesamum in the state. Sowing in Uttar Pradesh and Madhya Pradesh is also good this year," said Rakesh Gulecha, owner of RK Industries Jodhpur, which exports and trades in sesame seeds. The prices of Rajasthan sesame seed at present is Rs 39 per kg, and if production increases this may decrease to Rs 30 per kg for a short period.