Exports of sesame seed likely to fall

India’s sesame seed exports are likely to fall to 240,000-250,000 tonnes in 2008-09 (April-March), against 304,000 tonnes a year ago, because of prospects of higher production in China, the largest importer of Indian sesame seed, Kishor Bheda, head of sesame seed panel, Indian Oilseeds & Produce Exporters’ Association, said today. India is the largest exporter of sesame seed in the world, followed by China.

“We expect that China’s total sesame seed imports will be around 175,000-200,000 tonnes in 2008-09, against last year’s 300,000 tonnes. China’s imports are likely to fall due to better production there this year,” Bheda said. Last year, the country’s largest single customer was China, which imported 55,000 tonnes Indian sesame seed. China’s crop had also taken a hit last year because of bad weather conditions.

China is largest sesame seed producing country in the world, but it imports Indian sesame seed to meet domestic requirement and also for the exports. “Moreover, the crop situation in major sesame seed-growing African countries like Ethiopia and Egypt are good. So, competition will be tough this year,” he said.

India’s production

Bheda said India’s sesame seed production is also likely to fall this year because the acreage has shrunk marginally. “Area under sesame seed in India has shrunk marginally this kharif (June-September), against last year’s 1.4 million hectares.

White sesame seed crop in India this year will be around 300,000 tonnes, against 375,000 tonnes last year, as we expect that there might be some damage in Rajasthan crop due to delayed rainfall,” he said.

Gujarat and Rajasthan are major white sesame seed growing states in the country.

Brown sesame seed output in Andhra Pradesh, Karnataka and Tamil Nadu is also likely to decline slightly because of inadequate rainfall, Bheda said. Last kharif, these three states produced 150,000 tonnes brown sesame seed.

Prices

Most exporters said prices of sesame seed, which are ruling at Rs 63,000-64,000 a tonne, are likely to fall because exports are seen down.

“Sesame seed prices are around 70 per cent higher at present than last year’s prices. This year, prices went up due to high demand from China and European countries,” said Milank Shah, a Dahod-based exporter.

Shah said prices will fall because China’s demand may be less and African countries are likely to compete well in global markets this year.

He said prices are likely to decline by around 10-15 per cent from current levels.

Bheda also said prices will fall substantially this year when arrivals from the new crop start in October.