Is Pakistan's Sesame Seed Supply to China Drying Up?

The fluctuating fortunes of Pakistan’s agricultural industry have come to the forefront as the once-lucrative sesame seed market faces a sharp decline in demand and prices. This shift has left farmers grappling with uncertainty and the need to explore alternative options to sustain their livelihoods.

The Rise and Fall of Pakistan’s Sesame Seed Market:
- China’s reduced demand for sesame seeds has caused prices to plummet, from Rs20,000 per maund to Rs12,000, significantly impacting farmers’ income.
- Alan Xi, from China Machinery Engineering Corporation, highlighted the drastic change, with some farmers considering abandoning sesame cultivation due to low prices.
- The slump in sesame prices has also affected exporters like Fahad Shoukat of Armcom, who specializes in premium-grade sesame for the US and Europe.
Pakistan’s Position in the Global Sesame Seed Trade:
- Pakistan emerged as the fifth-largest exporter of sesame seeds, with exports valued at $403mn last year, a significant increase from $40mn in 2019.
- The tariff exemption and geographical advantage over competitors in India and Africa gave Pakistani exporters a competitive edge in supplying sesame to China.
- Pakistan’s sesame cultivation area expanded to 1.8mn acres, driven by the pursuit of high global prices, which have now undergone correction.
Challenges and Opportunities for Pakistani Farmers:
- Ibrahim Shafiq of Latif Rice Mills observed a surge in orders from China last year, but cautioned that the boom was short-lived.
- Farmers like Feroz Akhtar Shah are feeling the pinch of reduced prices, contemplating a switch to alternative crops like mangoes if the sesame market does not recover.
- Analysts suggest that exporters must focus on quality to tap into markets like South Korea and Japan, which value higher standards and are willing to pay premium prices.

The tale of Pakistan’s sesame seed industry serves as a stark reminder of the interconnectedness of global markets and the need for resilience and adaptability in the face of shifting dynamics. As farmers navigate these challenges, the key lies in exploring new avenues for growth and sustainability, ensuring a more secure future for agriculture in the country.