Sesame’s price in the international market dropped from U.S. $ 1,200 per ton to U.S. $ 500 in a one month time. This has led exporters of the agricultural product to be hesitant to supply and wait for the price to show any increment.
While attending the 4th International Conference organized by the Ethiopian Pulses, Oilseeds and Spices Producers and Exporters Association (EPOSPEA), President of the UK based Huyton Inc., Philippos Philippas, regarded the trend exporters following as unhealthy and said they will face loss if they are going to wait in speculation of price rise.
He advised Ethiopian exporters to be cautious and not to make the same mistake the world’s third largest sesame producer, Sudan, committed.
According to The Reporter, last year the Sudanese ended up exporting about 285,000 tons of sesame, which was way lower than what they originally planned.
“The global consumption is about 1.4 million metric tons and the availability is going to be about 1.7 million tons. Hence, there will be a surplus and that surplus will pressure the prices. The point I want to emphasize is that last year the sellers pushed the prices up. As a result, consumption was reduced worldwide. I don’t want the buyers to do the same now”, Philippas cautioned.
Ethiopia’s sesame major destination, China, was hit by draught and delay of rain, making some Ethiopian exporters confident on the current low market price. According to The Reporter, back in September one ton of sesame was sold for U.S. $ 2,200 and this price went down to U.S. $ 1,700 the next month.
Philippas believes U.S. $ 1,700 is going to be the market price of Ethiopia. Nonetheless, President of EPOSPEA, Haile Berhe, differs from Philippas’ stance. He furthered the price is going to fluctuate for the entire year and the exporters will behave accordingly.
China, destination of 40 percent of Ethiopia’s exported sesame, disclosed it is going to import 850,000 Tons of sesame this year which Philippas says is not the exact figure the nation will import. He claims the best China will buy is at a maximum of 650,000 Tons.
According to The Reporter Ethiopia expects to harvest a total of 350,000 Tons of sesame. Assefa Mulugeta, director general of the export promotion directorate general, this year harvest will be challenged due to the heavy rainfall and windy weather condition witnessed affecting the major producing regions in northern Ethiopia.
Source: The Reporter
