 "South Korean order may revive Indian sesame seed exports")
Five nations including India had bid early this month wherein finally six Indian companies won for an export order of 6,000 tonnes of premium and semi premium quality sesame seed.
The order comes at a time when Indian sesame seed exports were down by 25 per cent in the April-June quarter of financial year 2015-16 as compared to the corresponding quarter last year. However, the order is likely to revive Indian sesame seed exports scenario, say industry sources.
"Next tender for sesame seed exports will now open in September this year. Also, the previous quarter had seen decline in exports. Hence, the recent order from South Korea may revive the Indian sesame seed export industry and also assist in stabilising the domestic price," said Harish Lakhani, chairman of DML Group from Rajkot.
Domestic price of sesame seed is likely to stand at Rs 1,300-1,400 per 20 kg in near future. Currently, sesame seed prices are ruling in the range of Rs 1,450-1,500 per 20 kg. The prices have declined by roughly Rs 100 per 20 kg during the month of July and by almost Rs 300 per 20 kg in last two months.
According to industry sources, during April and June 2015, India has exported about 65,000 tonnes sesame seed, down by 25 per cent as compared to 87,000 tonnes in first quarter of 2014. Available stock in India is estimated about 45,000 tonnes while in international market it is nearly 200,000 tonnes, mainly because of higher production of Africa.
Apparently, the Indian firms had quoted in the range of $ 1,400-1,500 per tonne while other competitive countries like Sudan, Ethiopia, Nigeria and Tanzania had quoted about $ 200 higher per tonne.
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In fact, according to market sources, the Indian bidders had quoted rates lower than that prevalent in the domestic market. Sources said that high inventory forced bidders to quote the same. However, exporters had built the current inventory at the price range of Rs 1,800-2,100 per 20 kg in last three months, whereas the South Korean order will earn the exporters about Rs 1,800-1,900 per 20 kg.
"Indian bidders had quoted prices lower than the domestic market because of the large stock that they have been carrying. It is necessary to clear the stock before the new season starts in October. Overall demand from international market has otherwise been very dull and inventory has been high this year," said Lakhani.
The DML Group has bagged an order for 1,200 tonnes of semi premium quality sesame seed in the South Korean tender.
"This year overall demand in sesame seed is not so good and in July it is almost nil. This is mainly due to weak demand and higher stock position in domestic market. Moreover, good production in South America has reduced demand from Central America and that has also affected India export this year," said a Mumbai-based trader and exporter
According to Indian Oilseeds and Produce Export Promotion Council of India (IOPEPC) sesame seed export from India stood at 375,656 tonnes in 2014-15 as against 257,411 tonnes in 2013-14. It has estimated 714,000 tonnes production of the commodity for 2014-15 while production was 652,000 tonnes in 2013-14.