Sesamum Prices Robust On Increase In Demand.

International and domestic demand for sesamum (til) has ensured that the prices will remain firm even as a bumper crop starts arriving across Gujarat. With over 90% of the crop being exported to Korea, China, Europe and Arab counties for crushing purpose, traders are expecting an increase in acreage during the summer sowing that will take place across Gujarat, Rajasthan and Madhya Pradesh.

"Arrivals of the summer crop has started from last week. Output is expected to be around 50,000 tonne -- an increase of 5% from the previous year. The quality is good and daily arrival in major mandis of Rajkot, Gondal , Jungadh , Jetpur and Keshod were at 1,000 tonne," said Suresh Chandarana of Dhaval Agri Export from Rajkot.

The sesamum seed is used to make oil which is used as a cooking-oil in south India. It is also used for manufacturing perfumed oils and for medicinal purpose. Traditionally, the sesame is also used to make Indian sweets and as toppings on sweets, breads and burgers.

With a mere 5% carry-over stock, crop prices of white til were ruling at Rs 50 to Rs 53 a kg whereas the black til used for medicinal purpose and hair oil was being sold at Rs 100 a kg. "There has been a production loss of black til and the demand has picked up from US, ensuring its prices to be bullish," said Chandarana.

Sailesh Nendapara of Chandan Enterprise said that farmers were getting Rs 500 to Rs 1,030 for white til / tal for 20 kg and for black til Rs 700 to Rs 1,600 for 20 kg, depending on the quality. "Rains in the coming days could ruin the crop which is still in fields and may increase prices further in the short run," he said.

Exporters were signing new contracts daily. India annually exports 1.5-2 lakh tonne sesamum. "In the month of June itself, export from India will be over 30,000 tonne. The new contracts are being signed for Rs 55 a kg. Last year, we had exported in the same period for Rs 63 a kg. Competition from Uganda and Ethopia is the major reason," added Chandarana, who annually export 35,000 tonne. He added that Adani and Cargill had also entered the market to make the procurement.

Sowing for the kharif crop will begin in August and harvesting will take place in October. "If it rains more, the acreage will decrease as the farmers will be tempted to grow cotton and groundnut. We expect the acreage to remain between 2-2.5 lakh hectares," said Nendapara. As per the official figures in 2005, area under sesamum was over 4 lakh hectares, which has gradually decreased.

Source : economictimes.indiatimes.com