Sesame Seed Auction Prices Increase in Tanzania as Global Demand Soars

Published 2021년 7월 30일

Tanzania is one of the largest sesame-producing countries in the world and is currently in the process of harvesting the sesame plant sown during January. The harvest season starts in June and goes up to October; however, the government announced that the last auction for sesame seeds for the 24th of July 2021, marking the end of the season much ahead of time. The auction prices for sesame seeds have increased in the central producing areas of Lindi and Mtwara in South Tanzania.

Sesame seed is the ideal crop to grow in African countries as it is drought tolerant, unlike maize and many of the other traditional crops in the region. Currently, Tanzania is the largest producer of sesame seeds in Africa and one of the continent's leading exporters. Sesame seed production in Tanzania has grown dramatically during the past ten years. The production has increased from 90 thousand tonnes in 2009 to 680 thousand tonnes in 2019, making Tanzania among the largest sesame-producing countries across the world. Mtwara and Lindi regions of Tanzania are the main sesame-producing regions in the country. A large share of sesame is planted in January in Tanzania, and the harvest season starts in June and goes up to August.

Source: FAOSTAT.

Linus Ndongwe, Country Manager at Tridge informs that the sesame seed season is slowing down in Tanzania's major producing regions, Lindi and Mtwara. The last government auction for sesame seeds was scheduled on the 24th of July 2021, officially marking the end of marketing season lead by the domestic government. However, considering previous years' exports, Tanzania’s export cycle begins in early April and peaks in July, and slows in November before reaching the peak in December. The majority of the seeds are exported to China, representing 84.5% of Tanzania’s sesame seed export value.

As demand for China and India intensifies, Linus Ndongwe pointed out that since June 2021, auction sesame seed prices in Tanzania were at a weekly surge hitting USD 1.04 per kg due to increasing demand in the global market. The auction prices during the first week of July 2021 were recorded as USD 0.9 per kg, which increased to USD 1.1 per kg in the second week of July. The prices were exceptionally high in the central producing areas of Lindi and the Mtwara region located in South Tanzania.

Sesame seeds are very popular across the world and Africa, making them one of the most popular plants amongst farmers. The plant thrives in the agro-climatic condition of Tanzania, and Tanzanian sesame is one of the most preferred seeds for producing edible oils in the African continent. The increasing demand for sesame seeds has increased the auction prices of the seed across the markets as the supply remains limited compared to the soaring demand. In the last few years, it was seen that with growing realization about the export potential of sesame, production of sesame has also increased in Tanzania.