Festive fever fails to push sesame tags

Demand for sesame seed has risen in the domestic circuit, but prices have not been affected much with just a little upward move.

The demand has come mainly from Madhya Pradesh, Uttar Pradesh, Punjab and Maharashtra.

Prices of hulled sesame seeds, mainly sortex, which were reported at Rs 41,000 per metric tonne (mt) for sun-dry sortex and Rs 42,500 per metric tonne for auto-dry sortex in November last year, have hardly moved on either side.

Despite the festival season demand (Makar Sankranti) coming in since last month, prices of sesame seeds remained flat, in fact auto-dry sortex price has come down by Rs 500.

At present, sun-dry sortex of 99.95 per cent purity is being quoted at a Rs 41,000 and auto-dry sortex of 99.95 per cent purity at Rs 42,000.

While the demand for hulled produce has registered heavy gains from across the domestic circuit, it is the prices of mix varieties such as 99/1 and 98/2 which have moved up slightly despite not much demand.

Prices of 99/1 and 98/2 varieties, which touched Rs 31,500-32,000 and Rs 30,500-31,000, respectively, in November, have gone up further to Rs 31,750-33,000 and Rs 31,500-32,000.

Explaining possible reasons behind such a price rice, Dinesh Tanna of Tirupati Agri Brokers, said, "Demand of hulled sesame has come mainly from Madhya Pradesh, Uttar Pradesh, Punjab and Maharashtra (Mumbai), keeping in view the festival of Makar Sankranti. The demand may continue till January 14, afterwards it may slip a bit. There is no demand coming from from western countries."

So the suppliers of hulled produce are trying to encash the rise in domestic demand and get rid of the stocks by cutting down their profits.

This has resulted in prices of auto-dry sortex going down by Rs 500 compared with the price in November, adds Tanna.

At present, there is one tender from the Korean government in the pipeline (expected in February) and every supplier is eying the opportunity.

Again, there is a market buzz that demand for mix produce of 99/1 & 98/2 may come after Makar Sankranti from the western countries. That is the sole reason that prices of mix produce are on an upward curve, explained Tanna.

Excessive rains and unprecedented cotton crop cultivation have hit sesame cultivation across Gujarat, particularly in the Saurashtra region.

This year the state's sesame production is estimated to fall short by 50,000 metric tonne compared with last year.

All these factors put together were by and large perceived by speculators to play up the market, but fresh crop arrivals in African countries have compelled buyers to procure from African markets instead of India.

"When there is a short supply against the projected demand, prices are likely to go up. A tentative price rise of at least Rs 4,000 in each category "� hulled sun-dry sortex, hulled auto-dry sortex, mix 99/1 and 98/2 "� was expected, but this has not happened."

"Ethiopia and Sudan have registered arrival of fresh crops of a better quality than the Indian produce, so a majority of buyers have shifted their focus there and are busy striking deals and so the prices of sesame are not picking up in India as there is no demand from the western continents," claims Tanna.