W11 Sesame Update: Türkiye's Growth Trajectory and India's Supply Challenges Impact Global Prices

Published 2024년 3월 25일

In W11 in the sesame seed landscape, Türkiye's sesame industry is gaining prominence globally, capitalizing on its premium quality products and effective marketing strategies. Sesame exports surged by 62% YoY in 2023, reaching USD 124.5 million, with a target of USD 250 million set for 2024. Expansion beyond traditional markets is evident, with notable growth seen in exports to Japan, as well as increases in cumin and anise exports. Meanwhile, challenges in sesame production in India, including decreased sowing areas and adverse weather conditions, raise concerns about a potential global supply shortfall. Projections indicate a rise in sesame prices, impacting domestic consumption and international competitiveness against African producers.

Türkiye Aims to Double Sesame Exports in 2024, Leveraging High-Quality Product and Strategic Marketing

Türkiye's sesame industry is carving a niche in the global market by leveraging its high-quality product and strategic marketing initiatives. Sesame exports witnessed a remarkable 62% year-on-year (YoY) increase in 2023, reaching USD 124.5 million compared to USD 77 million in 2022. This positive trend is expected to continue, with an ambitious target of USD 250 million set for 2024. Turkish sesame is recognized for its superior quality, commanding a higher unit price of USD 2.40 compared to China's average import price of USD 1.50. This advantage is attracting selective markets such as Japan and European countries.

Export destinations are expanding beyond traditional partners. Notably, sesame exports to Japan saw a significant 170% YoY increase in Jan-24 and Feb-24. This growth reflects successful industry participation at international trade fairs. The positive trend extends beyond sesame, with cumin and anise exports also experiencing notable increases in Jan-24 and Feb-24. Cumin exports rose by 106% YoY and anise exports by 111% YoY. While Poland remained the top export destination for Turkish sesame in 2023, with USD 9.16 million, Iraq emerged as a significant partner in the same year, with USD 7.7 million. The industry's ambitious export targets and diversification efforts are laying the groundwork for continued growth in the coming years.

Uncertain Sesame Season in India Threatens Global Supply, Drives Price Projections Upward

The Indian sesame sector faces a confluence of factors that could lead to a supply shortfall. The sowing area for the Rabi season (April to June harvest) saw a significant decline, dropping from approximately 27 thousand hectares (ha) to 16 thousand ha by mid-Dec-23. Similarly, summer sesame sowing (May to July harvest) reached 84 thousand ha by February 23, 2024, yet remains below the previous year's levels. The Kharif season (June to September harvest), typically the primary production period, also witnessed a sowing area decrease. In 2024, Kharif sowing covered only 1.24 million ha, reflecting a 7.68% YoY decline compared to the previous year's 1.34 million ha.

Concerns about reduced production are driving projections of higher prices for quality sesame. Estimates suggest potential price increases ranging from USD 1.44 to USD 2.16 per kilogram (kg) when the Rabi harvest begins in Apr-24. Unfavorable weather conditions, particularly in Tamil Nadu, have further exacerbated the situation by delaying Rabi sowing and leading to crop losses.

India's position as the second-largest sesame producer makes it a key player in the global market. However, the potential supply shortfall coincides with rising domestic and foreign demand. The bullish trend in Indian sesame prices is impacting domestic consumption and making Indian exporters less competitive against African producers like Sudan, Nigeria, Tanzania, and Mozambique. This has led to China, a major Indian sesame importer, shifting to these African sources for more competitive pricing.