SESAME OIL – AN OVERVIEW OF INDIAN DOMESTIC MARKET AND EXPORT
Sesame is the oldest grown oilseed crop of the world. The
Term Oil comes from Latin word 'Oleum' which in turns come
‘Olive’. The Indian word for oil "TEL" comes from the
Sanskrit word 'Tila' which in turns come from ‘Sesame’
which is known as til in India. Sesame is reported to have be
originated in South Africa and was introduced to India by
migrants prior to the Indus valley civilization. Sesame seed
has one of the highest oil content of 45-50 percent among all other oilseed crops. It is also one
of the healthiest oil and has great nutritional values.
India is the largest producer as well as exporter of sesame in the world. West Bengal is the
single largest sesame producer accounting for over 40% of total sesame produced in the
country. Sesame production within the country, is mainly concentrated in four states including
West Bengal, Madhya Pradesh, Rajasthan and Gujarat accounting for more than 70% of the
total production. Majority of the sesame seeds produced in West Bengal are black while in
Gujarat and Rajasthan it is mostly white sesame seeds which are in high demand for the export
market compared to the black sesame seeds.
India produces about 7-8 lakh tonnes of Sesame seeds annually. About five lakh tonnes of
seeds is used for producing oil which roughly amounts to Two lakh tonnes of Sesame Oil for
domestic consumption. The balance two to three lakh tonnes of Sesame seed is exported to
countries like China, Japan, Taiwan , Arab countries, EU and US mostly in seed form and
also in smaller quantity in oil form. The dollar value for the export of sesame seeds is estimated
to be $350-400 Million annually .The share of sesame oil in export is estimated to be around
5,000 MT or $15-20 Million annually only.
The major domestic consumption points in India are the southern states particularly Tamil
Nadu where approximately One Lakh Tonnes of sesame oil is consumed annually. There is a
good demand for sesame oil in the urban households. Tamilians prefer their fish, brinjal, potato
or yam kuzhambu (curry) to be cooked in nallennai or sesame (gingelly) oil. The eastern and
western states of Bengal and Gujarat also consumes sesame oil but to a lesser extent and mostly
in the rural households.
The branded sesame oil market of India is estimated around 50,000 Tonnes or $200 Million
in dollar value annually. Idhayam is the biggest sesame oil brand of
the country with a market share of roughly 60 percent. They have an
annual sales of 25,000-30,000 tonnes. 80 percent of its sales comes
from the southern states specially Tamil Nadu. They are also into
export of sesame oil to cater to the Tamil diaspora living in US,
Canada etc. Its popular SKU 500 ml and 1 L retails at INR145 and
INR 280 respectively.
In recent times there has been a growing number of newer brands who are trying to create a
niche market for healthy, natural, zero heat and zero chemical edible oil targeting the urban
class. This new segment of Cold Pressed Oil is promoted as superior oil compared to the mass
produced refined palm, soya and sunflower oil and is sold at 200-300 percent
premium compared to the refined oil. The major brands in this segment are
24 Mantra, Pure and Sure, Flaxindia and Amrutva.
SESAME OIL - MANUFACTURING COST , INDIA
% OF OIL RECOVERED FROM SESAME SEED 45%
SESAME SEED - PRICE/QUINTAL INR 7000
COST OF SESAME SEED (2.2 KG) TO PRODUCE 1 KG OIL INR 155.4
PRICE OF DOC OBTAINED FROM PRODUCING 1 KG OIL INR 24.4
PROCESSING COST INR 10
TOTAL COST OF PRODUCTION OF 1 L SESAME OIL INR 141
