The Hindu Business Line : Sesame seed exporters bag Korea order

Behind the deal
Exporting firms offered $809-824 a tonne of white & $758-780 of crushing quality.
Korea imposes Customs duty of 650 per cent on imports of sesame seed.
Duties likely to be reduced in view of Seoul's WTO obligation.

Mumbai , June 21

Indian sesame seed exporters have bagged an export order of 4,800 tonnes from South Korea through tender participation on Tuesday.

South Korea had floated a tender for supplying of 5,000 tonnes sesame seed for the current month.

Of this, Indian exporters cornered about 4,800 tonnes and the remaining 200 tonnes were allotted to Ethiopia, trade sources said.

Enjoys lion share

"In the latest tender opened on June 20, the exporting firms have offered $809-824 a tonne of white 98/2/1 quality and $758-780 a tonne of crushing quality," Mr Sanjiv Sawla, Chairman, Indian Oil and Produce Exporters' Association (IOPEA), told Business Line.

India continues to enjoy a lion's share of the Korean sesame seed market, where imports are regulated by way of tenders.

The country of about 49 million people consumes over 80,000 tonnes of sesame seed alone.

Over the last 3-4 years, Indian seed quality has become very well accepted in the Korean markets.

Korea imposes Customs duty of 650 per cent on imports of sesame seed.

Prohibitive costs

"Practically, no material is imported into the country by paying such duties as one kg of Indian sesame seed costing Rs 35 would cost Rs 350 after paying duties and other costs," Mr Sawla said.

Most imports are by way of Government tender or private licences, which too are available at a premium of about 300 per cent.

"In view of WTO obligation, Korean markets will have no option but to reduce Customs duties on sesame and this would reduce domestic prices of sesame. As a result, imports and consumption could even double subsequently, making it a lucrative market for Indian exporters," he added.

Sesame sowing is yet to commence in Gujarat, a major producer of the crop.

Sowing delayed

"It is too early to give statistics for sesame planting.

Barring pre-monsoon showers early this month, it is delayed and late by more 8-10 days in Gujarat.

Rainfall is expected in the State by the month-end."

With rains playing truant, it might actually be beneficial for crops like sesame, which require less rainfall.

Late or less rains usually encourage farmers to plant sesame on a large-scale, he added.

Shift

Land under sesame seed cultivation is continuously decreasing in Saurashtra as some growers have shifted to cotton and pulses due to price advantage.

"New areas in Bundelkhand (in Madhya Pradesh) along with some regions in Uttar Pradesh have been brought under sesame seed planting in the recent time," said Mr Sawla.

IOPEA will be holding a seminar on July 9 in Khajuraho to educate traders and farmers in the region.

The seminar will cover statistics, new seed varieties, technology platforms, trade contracts, and other market-related information to improve quality.

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