Sesame from India: Low production and Increasing Price, but Growing Global Demand

Sesame is one of the oldest oilseed crops known to mankind and has been cultivated for over 3,000 years. Sesame has very high oil content and is known for a rich, nutty flavor. Both the production and the demand for sesame has been growing continuously for the past decades. The growth in sesame demand is mainly driven by 4 factors. First, is the increasing consumer trends towards healthy eating: sesame is one of the main oil and protein sources in vegan, gluten-free, and other plant-based diets. Second, the pharmaceutical and cosmetics industry is demanding more sesame seeds due to their high antioxidant content. Third, more sesame is being consumed globally due to the growing population in Asian and African countries. Finally, the increasing popularity of Asian and African cuisine in Western countries has led to a surge in sesame demand in Europe and the Americas.

Due to a drought in the first half of the year and floods during the monsoon season, the production volume of sesame in India in 2019 is expected to be lower compared to the previous years. In 2018, the production volume was low due to poor weather conditions as well. The low 2019 production volume and low carry-over stock from 2018 are expected to put upward pressure on sesame seed prices this year. The price of Indian sesame seed is expected to increase by around 10% to 15% in 2019 compared to last year.

India exports sesame to all parts of the globe: Asia, Europe, the Americas, and the Middle East. However, Jatin Enterprises, an Indian exporter, mainly focuses on two regions for its sesame exports: South East Asia and the Middle East. The demand in the company’s target markets - Thailand, Malaysia, Bangladesh, Sri Lanka, and the UAE - has been increasing steadily over the years, on par with the consistent increase in the global demand.

For Jatin Enterprises production season starts at the end of September and continues to the end of May. The company’s harvest season is from October to January, and the export volume is the highest during this period. Chinese sesame exporters are the main competitors for Indian exporters such as Jatin Enterprises. In terms of quality and price, Chinese and Indian sesame are very similar according to the company. Although China’s main export period - between February and May - does not directly overlap with India’s main export period, the two countries have to compete with each other. This is mainly because the two countries have similar export markets and because sesame can be purchased and stored for a long period. However, the growing global demand has lessened the competition between the two countries over the years.