W8 Sesame Update: China Boosted Investment in Pak-China Sesame Project as Sesame Imports Set to Surge, while Zimbabwe's Sesame Industry Sought Policy Adjustments

Published 2024년 3월 2일

In W8 in the sesame seed landscape, China plans to expand investment in the Pak-China sesame contract farming project and increase sesame imports from Pakistan to at least 5 thousand mt in 2024, up from 400 mt in 2023. This collaboration aims to address challenges in Pakistan's sesame cultivation, such as low market demand and limited cultivation, with sesame gaining traction due to China's growing demand and the short shipping time of 10 to 15 days by sea. Meanwhile, stakeholders in Zimbabwe's sesame value chain advocate for an increase in the foreign currency retention threshold to 100% to boost competitiveness, curb smuggling, and ensure fairer prices for producers amidst challenges, including smuggling of sesame to neighboring countries due to existing export policies.

China Boosts Investment in Pak-China Sesame Farming Project

China is set to increase investment in the Pak-China sesame contract farming project and plans to import at least 5 thousand metric tons (mt) of sesame from Pakistan in 2024, up from 400 mt imported in 2023. The collaboration between the Sino-Pak Agricultural Cooperation and Exchange Centre and Pakistani farmers aims to address challenges faced by sesame cultivation in Pakistan, such as low market demand and limited cultivation. A traditional crop in Pakistan, sesame is gaining traction due to China's increasing demand. The proximity of Pakistan to China allows for a short shipping time of 10 to 15 days by sea.

China's sesame import volume has remained stable at approximately 1 million metric tons (mmt) over the past three years. Xi highlighted the growth of sesame cultivation in Pakistan, from 200 thousand acres in 2018 to 1 million acres in 2023, indicating the potential for further expansion and increased collaboration between the two countries in the sesame industry.

New Sesame Varieties Transforming Contract Farming in Pakistan

A contract farming project between the Pakistan-China Agricultural Cooperation Exchange Center and Pakistani farmers introduced new high-quality sesame varieties and cultivation technologies, expanding sesame cultivation in Pakistan. By 2023, the total area of sesame crops grown by participating farmers exceeded 40 hectares (ha). This achievement represents a significant milestone in contract farming, addressing challenges encountered by Pakistan's traditional sesame crops, such as low market demand, limited planting areas, and lack of competitiveness.

Zimbabwe's Sesame Industry Advocates for Policy Change Amidst Smuggling Concerns

Stakeholders in Zimbabwe's sesame value chain, including Sustainable Agriculture Technology (SAT), urged the government to increase the foreign currency retention threshold from 75 to 100% to enhance competitiveness and curb smuggling. The meeting also addressed various issues, including preparations for the 2024 marketing season, crop validation, proposed buying models, and producer pricing. Additionally, stakeholders plan to launch a joint appeal to the government to review the retention threshold to facilitate legal trade and fairer prices for sesame producers. Smuggling issues were noted, with large volumes of sesame being smuggled from Zimbabwe into neighboring countries such as Mozambique and South Africa due to existing policies on export proceeds retention.