Sesame Prices (Q1 2022)
The future of the sesame seed business remains uncertain, particularly for the year 2022. Farmers in Rajasthan, Madhya Pradesh, and Uttar Pradesh fear crop loss in the first quarter of 2022 due to excessive rains. The price in 2022 will be determined by the availability of the new crop and the demand scenario once purchasers have met their needs for sesame seeds in the EU and Korea. China's consumption has not decreased. Japan is acquiring sesame seeds for 2022 since it cut its imports this year and did not have enough supply for 2021. The removal of COVID-19 limitations across the world and increased product use had a beneficial influence on the pricing. The price range of the seeds in Iran was between 1.25-and 1.28 USD/kg.
Sesame Seeds Prices (Q4 2021)
Prices in India continued to fall in the last weeks of the year, as local demand did not build up as predicted. Last-minute festive season sales surged in the approaching weeks, as the harvest season and winter in North India approached. The newly discovered virus omicron was rapidly spreading across Indian states. Crop production in India was much lower than predicted during this monsoon season, despite the fact that it rained heavily in all of India's southern states, particularly Tamil Nadu, Karnataka, Telangana, and Andhra. As a result, one can anticipate pretty strong crops in those states, where the new crop is scheduled to begin in early February 2022. However, the overall crop size is smaller, which may be sufficient to meet domestic needs. Thus, taking into account all of the aforementioned variables, it is reasonable to anticipate that the price of sesame seeds of different varieties will either remain stable at present levels or will not reduce significantly.
Sesame Seeds Prices (Q1-Q3 2021)
In 2021, their price increased. In India, there was a year-long shortage of high-quality sesame seed crops, with approximately 40% of them being faulty. The major difficulties and issues confronting the Indian planter in 2021, as a result of the pandemic, were labour shortages, market panic caused by reduced supply due to restrictions, which led to a rise in costs, lockdowns, shipping, high freight rates (nearly five times what they were previously), and a lack of container availability, as well as ETO-related problems, particularly with sesame seeds for the EU market segments. Their MSP in India was increased by 452 INR/quintal to 7,307 INR/quintal in June 2021.
The EU had set tough import restrictions on Indian sesame seeds beginning in September 2020 and exports from India to the EU were halted due to elevated levels of ethylene oxide in samples. This resulted in a shortage of sesame in European nations, resulting in a price increase. However, Indian suppliers resumed exports to EU countries following months of negotiation on the condition that they adhere to all EU quality criteria. By February 2021, India resumed the exports to the EU, restoring the lost equilibrium in the demand and supply dynamics.
Sesame seeds were being marketed in Brazil at a price of 1,300 USD/MT in early June 2021. It was previously offered at a price of 1,400 USD/MT FOB Santos, approximately three months ago. According to sources, their rates in Brazil were projected to fall when the season began in June, and the prices did indeed fall in the latter part of the quarter. The producers in Brazil's primary productive pole preferred the K3 type due to its ease of agricultural management, low input requirements, and increased production. Due to its less sweet flavour, the K3 cultivar is more ideal for oil production. According to market analysts, the K3 will account for almost 80% of overall output.
Sesame Seeds Prices Overview 2020
With 99% of hulling plants in India closed, stockpiles accumulated and pending orders began to accumulate in March 2020. April was a complete production wipeout, but by early May, things were looking up when production resumed at a reduced capacity. Imported cargo was also cleared, and a significant amount of surplus cargo scheduled by Indian firms was transferred to China. Still, the stockpile for the hulling manufacturers was greater than normal, and with the rapid depreciation of the rupee, it was priced considerably higher than anticipated, exacerbated further by expensive demurrage charges levied on importers. Chinese markets are normally closed in January in observance of the Chinese New Year. They were closed during the time of the pandemic. And, as a preventive measure in light of the coronavirus outbreak in Wuhan, the industries were placed on lockdown. Gujarat's commodity exports, particularly cumin seeds, sesame seeds, and groundnut oil, sustained a 10-15% damage over the months of June and July 2020. China contributed for between 20% and 30% of India's exports of several major commodities.
Consumers worldwide, particularly the millennial generation in Europe, have an increasing appetite for healthy elements in their diets. Their nutritious profile has increased consumer interest in recent years in European regions. As a result, it's unsurprising that the European Union purchases 50% of its yearly sesame seed imports from India. However, the EU imposed strict import limits on Indian sesame seeds in September 2020. The impositions were made as a result of the sample's high ethylene oxide concentration. When ingested in large amounts, ethylene oxide has been known to cause cancer. This disturbance created a demand-supply imbalance in the EU, naturally driving prices to skyrocket.
The seed’s production has historically been limited to the southern United States, owing to a dearth of manually harvestable cultivators adapted to other regions. Although the majority of commercial production occurs in Texas and Oklahoma, production is expanding into Kansas and Arkansas. The United States of America imports the majority of sesame seeds for conversion. Imports to the United States were worth USD 80.29 million in 2020.
Brazil, one of the most important LATAM countries, was ranked 12th in 2020 with a 1.98% share of worldwide sesame seed exports. It was placed 39th in terms of imports, accounting for 0.20% of global imports. Brazil also signed a trade pact with India in early 2020. The conditions of this agreement made it simple for them to be imported from India to Brazil and for maize seeds to be exported from Brazil to India.
Procurement Resource provides latest prices of Sesame. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Sesame for several regions around the globe, which are as follows:
Sesame is a flowering plant in the genus Sesamum (benne). It is widely naturalised in tropical regions across the world and is also cultivated for its edible seeds. Sesame is known to be one of the oldest oilseed crops. It has one of the highest oil contents in comparison to other seeds.
Production of Sesame involves the basic process of growing and harvesting of sesame plants, followed by the separation of seeds. Sesame seeds demand dry harvesting condition and thus, it is stored at 6% moisture or less to prevent them from becoming rancid.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).