H. L. Agro Shares insights on the Indian sesame market trends in 2017 & forecasts to 2018
The noted manufacturer & exporter of sesame seeds & corn derivatives, H.L. Agro Products, unleashes an analytical review of Indian sesame seeds that covers its local & global market dynamics, industry trends, market size, value/supply chain analysis, industry competition, & forecasts for the year 2018. The report based on the latest data& factual abstracts provides in-depth analysis of the global sesame market. Year 2017 witnessed a volatile trend of the Indian sesame market following the persistent price vulnerability, deficient yield, enhanced import duties, and mounting international demands primitively for the organic & hulled varieties.
The unprecedented rise in the sesame prices is one of the major reasons for the market turmoil. The price rise can be chiefly attributed to the increased rate of import duty on the oil seeds & edible oils category. The upsurge in the import duty is in pursuance of the government’s policy to give a boost to the domestic oil seeds consumption. It has apparently triggered the demand for oil seeds in the domestic market & withered the global supply of sesame seeds. The sesame crop this year is not promising enough to cater to the domestic & global demands. The new crop of Indian sesame seeds is still arriving in the market. For the FY 2017-18, the crop yield is projected at 455 Million Metric Tonnes against the production of 525 Million Metric Tonnes last year. The poor production is in consequence of the detrimental climatic conditions in the sesame producing regions of India.
With a total yield of approx. 4,18,164 MT in 2017, the Indian crop of sesame seeds witnessed a downturn of 14.7 % as against the last year. Around 45% of the total sesame produce from India was accorded to exports amidst 110 countries in the year. Europe, Vietnam, Korea, Taiwan & USA emanated as the key export destinations for India in terms of the volume of trade, followed by a notable business realization from the markets of Iran & Russia.
The mounting global demand for sesame seeds as a health supporting natural food has lately increased the oilseeds exports. However, market growth for sesame seeds is continually subdued owing to its low yields, oscillating prices and high dependence on climatic conditions. According to the Indian Oilseeds and Produce Export Promotion Council of India (IOPEPC) , Sesame seeds exports from India stood at 1,00,950 tons in 2016-17 as against 1,20,949 tons in 2015-16. Also, the value wise exports declined to Rs.827.51 crores from Rs. 1022.15 crores.
Market Forecasts 2018:
- FY 2016-2017 was a year of scarce supply wherein both the acreage & yield of sesame seeds were subjacent to the previous year’s figures.
- Prices mounted high due to meagre supply, heightened import duty & extended demands emerging from the domestic markets.
- Tender business likely to come to India this year.
- Speculators will tend to dominate the international market in view of the projected deficient crop, price & supply chain orientations.
- Anomalies in the currency & climate of the top sesame producer Sudan will advance international gateway to the Indian markets.
- China resorted to aggressive buying of Sudan sesame seeds in 2017, may however change the market basis the currency & pricing vulnerability.
- Business from European Union is envisaged to top the export charts in the next year.
- U.S.A, Japan & Germany are laying forward a lucrative export market for the organic sesame producers of India.
- With the ongoing logistic congestion in Nigeria, the global buyers of African sesame are anticipated to head towards the Indian & adjoining continents.
- India will remain a cynosure of sesame business for the worldwide buyers during 2017-18.
Agriculture Products Export Development Authority (APEDA), India Organic, USFDA, Kosher, Halal & USDA Organic and Export Promotion Council. HL Agro now endeavours to burgeon globally by elevating its product portfolio with an array of whole and ground spices, chick peas, peanuts, malto-dextrin, dextrose monohydrate, high-maltose corn syrup amongst others.