W4 Sesame Seed Update: Declined Cultivation in India and Robust Demand in China During Holiday Season

Decline in Sesame Cultivation Expected to Raise Prices in India

The Indian Crop Forecast Coordination Centre (CFCC) predicts a decline in sesame cultivation during the Kharif season, projecting a decrease from 1.344 million hectares (ha) in the 2022/23 season to 1.243 million ha in the 2023/24 season. Furthermore, there is also an anticipated reduction in the Rabi season due to decreased acreages and potential supply shortages resulting from heavy rainfall. Consequently, the expectation is for sesame seed prices to rise.

WTO Successfully Concludes Third Bid for 2024 Sesame Tariff Rate Quota

The World Trade Organization (WTO) has successfully concluded the third bid for the 2024 Sesame Tariff Rate Quota (TRQ), causing significant ripples in commodity markets. Successful bidders from key origins such as India, Togo, Nigeria, and Burkina Faso are poised to strengthen their market presence, reassuring participants seeking reliability and predictability amid the surging global demand for sesame. The observed price range of USD 2,050 to USD 2,142 per metric ton (mt) reflects the market's valuation, and the WTO's oversight of the bid ensures fairness and stability in the sesame market.

Significant Drop in Sesame Seed Inventory at Huangdao Port, China, Due to Holiday Season Demand

In Jan-24, the sesame seed inventory at Huangdao Port, China, experienced a notable decrease of 17.71%, dropping from 96 thousand mt in Dec-23 to 79 thousand mt. This decline is attributed to robust demand during the holiday season. The average daily output stood at around 2 thousand mt, primarily featuring major varieties sourced from Sudan and Niger. With the conclusion of the Spring Festival stocking, there is a weakening demand trend, prompting buyers to adopt a more selective approach.