Sesame Seed Oil From India: Quality over Price

Published 2019년 10월 11일

Due to droughts and floods in India in 2019, the price of sesame seed has increased by around 10% to 15% this year compared to 2018. As a result, the price of sesame oil has also increased from 260 INR per liter (3.66 USD) to 300 INR per liter (4.22 USD).

India is one of the major sesame seeds and oil producers in the world. Currently, sesame seed volume is much lower compared to previous years. The low carry-over stock from a small winter crop in 2018 and a drought in the first half of the 2019 and floods during this year’s monsoon season, significantly reduced the availability of sesame seeds in India. As a result, the price of sesame seed has increased by around 10% to 15% this year compared to 2018.

According to Pristine Foods, an Indian Sesame Oil Exporter, the export price of sesame oils has also increased due to the price increase of sesame seed, the main ingredient used in manufacturing sesame oil. In February 2019, the company’s FOB price of sesame seed oil was 260 INR per liter (3.66 USD). However, as the sesame seed prices increased throughout 2019, the company’s FOB price for shipment in November is expected to be 300 INR per liter (4.22 USD), also an increase of around 15%.

Rather than competing with low prices, Pristine Foods focuses on quality. To ensure the quality of its sesame oils, the company only sources from its sesame seeds from local partner farmers. In addition, instead of using artificial sugar or syrup to remove the bitter taste of sesame seed in its oil, the company uses natural palm jaggery. Although the company does sell its oils locally, it is planning on focusing mainly on exports as the Indian market, in general, has a preference for low priced oils rather than quality oils.

Pristine Foods is a relatively new sesame oil exporter. Currently, the company only exports its oils to Qatar. So far in 2019, the company has exported around 16 tons of sesame oils. However, since the company has the capacity to export 120 tons of sesame oils annually, the company is looking to expand its market in the Middle East, as the Middle Eastern markets favor quality over price. In the future, the company also plans on expanding to Mexico and the US and is currently working on getting its certifications.