The Hindu Business Line : Sesame prices likely to remain firm

SESAME seed prices, especially in Gujarat, may remain firm in the next few days following reports of crop damage, continued export demand and emergence of local buying interest.

Sesame seed prices are ruling higher at Rs 750-800 per 20 kg against Rs 450-500 quoted during same period last year. The average price during the current season has been around Rs 575-600.

Sowing of sesame in Gujarat was 4,10,300 hectares till September 9 against 4,34,800 hectares during the same period a year ago, down 6 per cent.

"There has been 20 per cent damage due to delayed rains," an official of the State Agriculture Department said.

"Fresh arrivals of new seeds have already begun but pace of daily inflows is around 1,500-2,000 bags (each of 75-80 kg) in the past 10 days. Peak arrivals will start in two weeks," a leading trader of Rajkot said.

"There are some enquiries from Andhra Pradesh. Traders are awaiting some good export demand in the next few days. There is a fresh tender of 4,000 tonnes to be floated by Korea this month," he said.

Mr Sanjay Shah of Premji Ghellabhai & Co and the President of the Bombay Oilseeds Exchange Ltd (BOEL) told Business Line: "Currently, seed prices in Gujarat are ruling higher than the last season, up by almost 60 per cent. Market should now stabilise but, overall, it may rule higher by 20 per cent than last season's level. On the other hand, all India crop acreage is expected to be good, especially in north India."

"Export demand for sesame will be maintained during the next three months as fresh arrivals from major producing countries such as China, Sudan and Ethiopia are expected flow into the market around November/December. However, domestic demand could be down marginally this year," Mr Shah said.

Export demand of hulled sesame from the Gulf and Europe is good.

The country exports 50,000-60,000 tonnes of hulled sesame seed. Total exports during the current season 2003-04 (October-September) is estimated at 2.25 lakh tonnes.