Ethiopia exported 288,752 tons of sesame in the past ten months earning USD 466.44 million in revenue.

In the same period last year, Ethiopia earned USD 693.5 million from Sesame export, but this year’s export revenue declined to USD 227 million.

Excess Sesame supply, falling prices in the global market, poor local sesame quality caused by bad weather, hoarding of seeds by farmers and limited number of export destinations can be mentioned as the causes for the revenue drop.

China, buyer of 64.5 percent of Ethiopia’s Sesame seed export, decreased its import as it met its demand via imports from India and local production. Presently, Sesame is sold at USD 1,300 per ton, down from USD 2,000 to 2,400 per ton a year ago, according to Ministry of Trade.

“Many farmers were tricked by last year’s inflated prices and held on to their yields hoping for higher profits. However, their calculations were misguided. Consequently, other global sesame producers were able to take advantage of the opportunity,” Mulugeta Seid, Crops Market Director at the Ministry of Trade said.

“The most challenging factor was the high supply in the global market that forced Ethiopian sesame exporters to sell below their targeted prices. Additionally, weather fluctuations in India worried the Chinese, who decided to buy Indian sesame earlier than usual. Chinese demand for Ethiopian sesame thus decreased” he added.

The Public Ledger reported that Indian Sesame seed production is expected to drop because of the aggravating weather conditions. To this effect, Ethiopia continues to be one of the world’s top five Sesame seed exporters.

Source: Capital