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The Indian sesame market is experiencing a notable firming of prices driven by constrained physical availability, even as other edible oil complexes like mustard and palm oil show signs of softening. According to recent trade reports from New Delhi, sesame oil prices have climbed by approximately ₹500 per quintal, reaching ₹19,000, which underscores the robust demand for underlying seed values in the domestic sector.
This bullish sentiment is reflected in export quotations from New Delhi. Indian conventional hulled sesame seeds (99.90% purity) are currently indicated at EUR 1.50 FOB New Delhi, a step up from the EUR 1.48 seen in early October. Premium black varieties have followed suit, with 'super z black' and 'semi z black' quoted at EUR 1.99 and EUR 1.92 per kilo respectively, marking a modest increase over recent weeks.
Domestic dynamics currently hinge on limited spot supplies. While mustard seed prices have slipped to the ₹8,650–8,700 range due to reduced mill buying at peak levels, sesame and cottonseed oil remain buoyant. This suggests intense competition among crushers for limited raw material in the pre-harvest window. Local mandi data further confirms this strength, with average spot prices holding roughly 20% above the official Minimum Support Price (MSP) of ₹10,346 per quintal.
Looking ahead, the outlook for the 2026 Kharif crop is substantial. Planted hectares have expanded by a mid-teens percentage year-on-year, with analysts projecting that output could nearly double compared to the previous season. While this suggests a potential supply relief on the horizon, market participants emphasize that the current tightness will persist until new crop arrivals normalize in quality and volume.
In the broader context, international crude palm oil benchmarks near $1,235 per tonne continue to act as a pivot point for Indian import costs. Meanwhile, weakness in by-products, such as cottonseed cake trading around ₹4,000–4,300 amid sluggish feed demand, indicates that the current uptrend in sesame is specifically driven by human consumption and export demand rather than a general oilseed rally.
India remains a critical supplier for global markets, and rising domestic values are testing export competitiveness into Asia, the Middle East, and Europe. With weather conditions in key producing regions like Rajasthan currently trending hot and dry, the environment is favorable for the final stages of the Kharif crop. However, because of a delayed monsoon onset, the bulk of arrivals may not peak until late October or early November.
In the short term, the sesame market is expected to remain firm, supported by high crush margins and tight spot availability. Traders are closely watching for the first significant waves of the Kharif harvest, which will determine if current price levels can be sustained or if the influx of new supply will trigger a price correction.
Source: CMB News