Boom in sesame seed exports likely to continue

Exports sesame seed from the country in the current season crossed the one lakh ton mark despite a more than 25 per cent in the price of the product. Demand from China led to the surge in export volumes and price.

Exports were likely to rise further as the 1 lakh ton volume was reached just three months after arrival of the sesame seeds crop.

Till middle of September, traders world over expected sesame seed prices to stabilise at lower levels with news of encouraging crops in India, Sudan and Ethiopia, said Kishore Tanna chairman, Indian Oilseeds & Produce Exporters Association (IOPEA).

Strong demand from China upset these calculations. The Chinese imported the commodity to meet domestic requirements and overseas commitments following crop failure there. By an estimate, about 40,000 tons have been shipped to China so far.

Demand from China is mainly for natural sesame seeds, which are either crushed into oil or used as raw material by the hulling industry.

The ruling price for natural sesame seed has moved to Rs.40,000 per ton from last year's Rs.30,000 per ton.

Demand for hulled sesame seeds was also firm. Prices in regions like central America and China were ruling at about $ 300 per ton higher than India. In the past five years, hulling factories had not enjoyed such good demand and margins.

Prospects for exports in coming months were bright as China was expected to continue buying to cover the crop shortfall.

Total exports for the year may cross 250,000 tons, valued at over Rs 1000 crore. Traditional buyers have continued to import from India.

Accurate export data was however a problem for exporters seeking to develop a pricing and shipment strategy. Monitoring of exports was earlier done by IOPEA but this function was taken away a few years ago.

India's share in world sesame seed trade was about 30 per cent. Joint efforts were needed from all stakeholders like growers, processors, exporters and government agencies to rise exports further, IOPEA said.