Sesame prices likely to remain high due to reduced stock and production
25-Jul-2024 10:43 AM
Rajkot. South Korea has announced a new tender for the purchase of sesame. Earlier it was expected that the tender would be issued for import of 8000 tonnes but the actual tender has been announced for 10,000 tonnes.
This can provide a good support for strengthening the prices of sesame in the domestic market. A leading trader (broker) of Rajkot says that at present there is a huge demand for hulled sesame seed in the global export market.
Due to this strong demand, the prices of sesame of both natural and hulled categories are expected to increase by Rs 400/500 per quintal in the near future.
At present, the arrival of sesame in the markets of the country's important producing states - Gujarat, Maharashtra and Andhra Pradesh is decreasing very much, due to which its shortage is being felt.
This lack of supply and availability can play a very important role in keeping the market price dynamic.
As far as the sowing of Kharif season sesame is concerned, this time not only is its pace slowing down, but the possibility of damage to the crop has also increased due to heavy rains and waterlogging in the fields in some areas.
Government data shows that compared to last year, the production area of sesame has decreased by 50 percent in Gujarat and 21 percent in the whole country during the current Kharif season.
Monsoon rains are likely to continue in August and September as well, due to which the risk of damage to the sesame crop may remain in the future as well.
This will lead to a huge decline in the production of Kharif season sesame. The import of foreign sesame is likely to start in the country from September.
It is worth noting that due to the high international market price, the import cost of sesame is quite high.
Since the global market price of hulled sesame is higher than the domestic market price, if the import is expensive, then the importers will not want to sell their stock at a lower price.
In view of the above facts, the domestic market price of sesame may remain bullish or dynamic in the coming months as there will be strong demand for hulled sesame,
there may be shortage of sesame due to low arrival, limited stock and weak production and the cost of sesame imported from abroad will be high.