SESAME SEED

0 | P a g e

SESAME SEED

1 | P a g e

Table of Content

Topic Page No.

Introduction 2

History 3

Main constituents 5

Cultivation pattern 6

World Sesame Situation 8

Production of sesame seed in India 13

Indian sesame seed market 15

Major trading centers of sesame seed 17

Industry Analysis 18

Tables Name Page No.

Regional Sesame Seed Production, Trade 9

And Consumption

Major Sesame Seed Producer 9

Major Sesame Seed Exporter 10

Major Sesame Seed Importer 10

China Sesame Trade 12

SESAME SEED

2 | P a g e

Inroduction

India is the fourth largest oilseed producing country in the world, next only

to USA, China and Brazil, harvesting about 25 million tons of oilseeds

against the world production of 250 million tons per annum. Since 1995,

Indian share in world production of oilseeds has been around 10 percent.

Although, India is a major producer of oilseeds, per capita oil consumption

in India is only 10.6 kg/annum which is low compared to 12.5 kg/annum in

China, 20.8 kg/annum in Japan, 21.3 kg/annum in Brazil and 48.0 kg/annum

in USA.

Many varieties of oilseeds along with tree origin oilseeds are cultivated in

India. Among these, the major oilseeds are Soybean, Cottonseed,

Groundnut, Sunflower, Rapeseed, Sesame seed, Copra, Linseed, Castor seed

and Palm Kernels. India occupies the place of pride as the world's largest

producer of Groundnuts, Sesame seeds, Linseeds and Castor seeds. In India,

oilseeds are grown in an area of nearly 27 million hectares across the length

and breadth of the country. Depending on the period of cultivation, the

oilseeds are classified as 'Kharif Crop' and 'Rabi Crop'. The Kharif Crop that

is dependent on the Monsoon is harvested around October-November each

year. On the other hand, the Rabi Crop is harvested around March-April

each year. The edible oil industry of the country comprises of 50,000

Expellers, 600 Solvent Extraction Plants, 300 Vegetable Oil Refineries, and

SESAME SEED

3 | P a g e

175 Hydrogenation Plants. The edible oil sector occupies a distinct position

in Indian economy as it provides job to millions of people, achieves on an

average a domestic turn over of US $ 10 Billion per annum and earns

foreign exchange of US $ 90 Million per annum

History Sesame seed is one of the oldest condiments the human race has ever

known. The sesame plant had been grown since ages in various tropical

areas of the world since prehistoric times and had been used as a flavoring

agent. Though the origination of the sesame is a topic that is subject to

controversy, some of the historians believe that the plant originated on the

lands of Indian subcontinent as the earliest references regarding this plant

and the flavoring agent are given in the early Hindu legends. Also, some

legends also describe the origination of sesame in their own way. One of

those legends mentions that when the world was to be created, the gods

consumed wine prepared from sesame seeds.

Initially sesame seeds were only known for the use of condiments and for oil

and wine. Its other uses as medicine or perfumes were discovered much later

with time. The sesame traveled to the Middle East from India with the help

of ancient traders and wanderers. It still forms a significant part of their

culture and cuisine. The earliest use of sesame oil was traced back to around

SESAME SEED

4 | P a g e

3000 BC in the Middle East. The Europeans encountered the seed when it

was imported from India in the 1st century AD. The use of sesame seeds in

baked foods was started by the early Egyptians. It became popular world

over even before the beginning of the 16th century and the Africans

introduced it into America in the 17th century.

Sesame (Sesamum indicum L.)

Pharmaceutical Semen Sesami Arabic �����, ���

Juljulan, Zelzlane, Sumsum, Simsim Chinese (Mandarin)

�� [zh� má], � � [hú má] Zhi ma, Zi ma, Zi Moa, Hu ma

English Semsem, Gingelly French Sésame, Teel, Till German Sesam, Vanglo Japanese Goma, Shima Spanish Ajonjolí, Sésamo

Used plant part Seeds which are either simply dried or dried and toasted. Sesame seeds can be off-white, brown, grey or black.

Black and White sesame seeds

Sensory quality The dried seeds taste nutty; their flavour is dramatically increased by

toasting. Oriental (dark) sesame oil has a strong, somewhat dominant nutty

odour.

SESAME SEED

5 | P a g e

Flowering sesame plant Unripe sesame capsules Plant family : Pedaliaceae

Taste and aroma: Sesame seeds are not very aromatic but they have a mildly

nutty, earthy flavour. When sesame seeds are dry roasted their nutty aroma

and flavour is enhanced. Black sesame seeds have an earthier taste than

white sesame seeds and are not usually ground

Main constituents The seeds contain about 50 to 60% of a fatty oil, which is characterized by a

two lignanes, sesamin and sesamolin (approximately 300ppm in the oil),

whence during refinement two phenolic antioxidants, sesamol (3,4-

methylenedioxyphenol) and sesaminol, are formed.

Sesame oil is mostly composed of triglycerides of the singly unsaturated

oleic acid (40%) and the doubly unsaturated linoleic acid (45%), besides

approximately 10% saturated fats (iodine index 110). Because of its

SESAME SEED

6 | P a g e

powerful antioxidant and because triply unsaturated fatty acids are missing,

sesame oil has an excellent shelf life.

Origin

Sesame is an ancient cultigen. Today, it is mostly grown in India and the Far

East (China, Korea), but its origin is probably tropic Africa (although some

other sources seem to favors an Indian origin).

Cultivation pattern Sesame plant is one of those plants that thrives in the tropical conditions and

are easily adaptable to the environment. That is why it is mostly found in the

countries lying in the tropical belt of the world. Sesame is a drought resistant

annual plant and yields maximum when grown at temperatures 25 to 27

degree Celsius. Sandy loam, well-drained soil type with alkalinity ranging

from 5.5 to 8 is required for the efficient performance of the plant but the

crop can be grown on the various other soil types also. Many varieties of the

plant are multi branched and the other less branched and it gains a height of

20 to 60 inches. White to pale-rose, bell shaped flowers begin to occur in 6

to 8 weeks of plantation and the leaves are generally variable in size. The

sesame seeds are derived from the fruit of the plant, one fruit containing 50

to 100 seeds. Most of the harvesting is done manually making it basically a

commercial crop the cost being quite nominal.

SESAME SEED

7 | P a g e

The plant does not survive water logging or wet conditions. In India, sesame

is available throughout the year as it is grown both in the winter as well as

summer season, most of it cultivated as kharif crop. Northern part of the

country produces its entire sesame yield as khariff crop while the southern

part of the country produces the same as both khariff and rabi.

Native range: Africa, India, China

Culinary uses: Sesame seeds can be scattered over breads or ground and

added to the dough before baking. They are used to dress cold chicken,

noodles, and vegetable salads.It is essential to the Middle Eastern spice

blend za'atar, and to Japanese seven-spice powder. Black sesame seeds are

often used in Japanese and Chinese cooking as a garnish for rice and

vegetables, and to coat fish and seafood before cooking. Blended with coarse

salt, they make the Japanese condiment goma shio that is sprinkled over

vegetables, salads and rice.

Other uses: Sesame oil is used in lubricants, soap, cosmetics, and ointments.

Storage: Sesame seeds will keep for up to 2 years in an airtight container.

SESAME SEED

8 | P a g e

World Sesame Situation

Market update

The world sesame situation in 2008 has made “US grown sesame” of much

greater importance for US food companies and world markets in general:

� As a result of changing consumption patterns in Asia and unfavorable

weather conditions in several growing areas, the world sesame supply this

spring became tighter than anyone in the trade today can remember. These

consumption changes will, most probably, continue tight supplies even when

favorable weather patterns return.

� Prices, which spiked substantially this spring, have declined yet no one

expects that they will return to a point anywhere close to historical levels.

�Of the four major sesame producers, China has moved from a major

exporter to the major importer. The US does not allow trade with Sudan.

Myanmar prohibits exports in order to increase their domestic vegetable oil

supply.

�There is a continuing urban migration by small farmers in these

developing countries, leaving fewer and fewer people to harvest sesame for

local consumption and for export to world markets.

SESAME SEED

9 | P a g e

REGIONAL SESAME PRODUCTION, TRADE, AND CONSUMPTION

Area

Area Harvested

(000 acres)

Production (000 tons)

Imports Exports Net Imports

(Exports)

Consumption

(000 tons) (000 tons) (000 tons)

Asia 11,182 2,397 749 409 340 2,737 Africa 7,273 1,152 39 463 (424) 728 Europe 1 1 145 23 121 122 North America 0 0 54 3 51 51 Central America 257 63 43 57 (14) 49 South America 377 108 5 90 (85) 23 Oceania 0 0 8 0 8 8

World 19,090 3,726 1,042 1,046 3,736

MAJOR SESAME PRODUCERS

(in thousands of short tons of whole seed) CY 2007

Country Area Harvested

(000 acres)

Production

(000 tons) India 4,324 739 Myanmar 3,954 661 China 1,534 615 Sudan 3,781 287 Uganda 692 185 Ethiopia 544 181 Nigeria 484 110 Paraguay 148 58 Bangladesh 198 55 Tanzania, United Rep of 284 51 Thailand 162 47 Central African Republic 99 44 Egypt 77 41 Pakistan 210 41

SESAME SEED

10 | P a g e

MAJOR SESAME EXPORTERS (in thousands of short tons of whole seed)

CY 2005

Country Exports (000 tons)

Imports (000 tons)

India 220 5 Ethiopia 178 2 Sudan 146 0 China 57 214 Nigeria 50 0 Venezuela 35 0 Tanzania 34 0 Myanmar 34 0 Paraguay 32 0 Guatemala 31 16 Pakistan 27 0 Thailand 26 13 Bolivia 23 0

MAJOR SESAME IMPORTERS (in thousands of short tons of whole seed)

CY 2005

Country Import

(000 tons)

Export

(000 tons) China 214 57 Japan 179 Turkey 95 Republic of Korea 58 United States of America 47 Saudi Arabia 33 Germany 28 Syrian Arab Republic 25 Mexico 25

SESAME SEED

11 | P a g e

WORLD TRADE

1. As shown above, the world trade in sesame measured as imports continues

to increase. In the last 15 years, the amount imported has increased by 88%.

2. The most significant country in world trade is now China because of its swing

from a major exporter to the major importer as shown below.

SESAME SEED

12 | P a g e

CHINA SESAME TRADE (in thousands of short tons of whole sesame)

Year Exports Imports Net imports (Exports)

2000 113 41 (73)

2001 75 43 (32)

2002 108 45 (63)

2003 114 108 (7)

2004 46 153 107

2005 57 214 157

As the Chinese economy grows, incomes improve and the demand for

sesame increases. This can be seen in imports, which have steadily

increased to more than fourfold in six years. Despite the high variability in

exports, the increased demand for sesame in China will cause its need to be a

net importer to increase.

SESAME SEED

13 | P a g e

Production of sesame seed in India

India had been a dominant and one of the oldest producers of sesame in the

world. Sesame seed provides a traditional source of oil for many

communities in India. The country produces around 680000 metric tons of

sesame seed annually and stands at the second place in terms of production.

The country also ranks 1st in the context of the area covered under the

cultivation of the crop. The states, Gujarat and West Bengal account for the

maximum production in the country producing 2 lakh tons sesame seeds

every year. The list of all the major sesame-producing states in India is

shown below

Gujarat 180 -200 Thousand Tons

Rajasthan 70 - 80 Thousand Tons

Uttar Pradesh 60 - 70 Thousand Tons

Madhya Pradesh 50 - 60 Thousand Tons

Maharastra 30 - 40 Thousand Tons

Others** 80 - 90 Thousand Tons

** Others

SESAME SEED

14 | P a g e

• West Bengal

• Tamil Nadu

• Orissa

• Andhra Pradesh

• Punjab

• Karnataka

India produces a wide variety of sesame seeds differing in colors, size, oil

content etc. the eastern part of the country generally produces seeds of

inferior quality in colors like red and black. But the western part of the

country produces a much superior quality sesame seeds mostly white in

color. The production figure of sesame in the country is a highly variable

figure as the production is largely dependent on the monsoon and the rainfall

level.

SESAME SEED

15 | P a g e

Indian sesame seed market

The sesame plant owes its origin to the Indian subcontinent and that’s why

the crop has a vital link with the country. The uses that the crop offers were

spread through out the world from India only. Various Hindu legends tell

about how the seeds were used as flavoring agents and as a source of oil in

the ancient time. The weather conditions in India also suit the crop and that

is why the country is one of the largest producers of sesame. The country is

positioned at the second place in the list of largest sesame seed producing

countries. India’s annual average production hovers around 680000 metric

tons contributing around 22% in the world’s total production. Gujarat and

West Bengal are the major producers. In context of consumption of the crop,

India again is one of the major sesame consuming countries of the world

having sesame oil consumption figures 1.6 lakh metric tons in 2004-05.

In the world market for sesame, India has a reputation of being a net

exporter. The country is one of the largest exporters of sesame exporting

around 5.4 lakh metric tons sesame annually. As the production in India is

sufficient to satisfy the domestic consumption demand, the left over sesame

i.e. around 25% of the total production is exported to various importing

nations of the world. The countries that forms part of the market for Indian

sesame are

SESAME SEED

16 | P a g e

• Germany

• Turkey

• Netherlands

• United States of America

• Greece

• Hong Kong

• Israel

• China

• United Kingdom

• United Arab Emirates

In India the seeds are valued on the basis of their color. The seeds having

whitish color are considered to be of good quality and having high oil

content and the seeds of different color are considered to be of inferior

quality.

SESAME SEED

17 | P a g e

Major trading centers of sesame seed

The major trading center in India where sesame seed is traded is the

Saurashtra region of Gujarat. The major states where sesame seed oil is

traded are Tamil Nadu and Kerala.

SESAME SEED

18 | P a g e

INDUSTRY ANALYSIS:

MARKET POTENTIAL

The sesame has uniform white colour and is ready for use in cookery and

confectionery.

It is rich in protein (22%) and oil (60%). It has a large demand in

domestic as well as export markets particularly for use in the

confectionery industry.

In 1993, the world trade in Sesame seed was 486,000 t. Japan was the

largest importer taking 24% of the world imports. The second largest

importer was the USA with 8% of world imports.

It is forecast that the imports of sesame seed will grow at between 6 and

8% per annum until the year 2012.

Bakery industry. The bakery industry prefers dehulled seeds, which are

purchased from local and overseas suppliers.

Halva industry. Halva is a popular sweet made by mixing approximately

50% tahini with boiled/whipped sugar and several other ingredients

SESAME SEED

19 | P a g e

Process requirements (Manufacturing Industry And Exporting Industry)

TECHNICAL ASPECTS

1.1 Raw material

The important sesame growing states are Gujarat, Maharasthra, Madhya

Pradesh, orissa, Rajasthan, West Bengal, Karnataka, Tamilnadu, Andhra

Pradesh and Uttar Pradesh. As such sesame seed are easily available all over

the country.

SESAME SEED

20 | P a g e

1.2 Process of Manufacture The process details are available with CFTRI. It consists of the following

steps:

a) Preliminary cleaning and grading: Commercial quality sesame seed is

cleaned to remove dust, fines, stones and other foreign matter using

vibratory screening equipment, followed by destoning.

b) Contacting with hot Iye: The seeds are placed in a boiling solution of

sodium hydroxide for

a prescribed time. These are thoroughly washed by a stream of water.

c) Removal of skin and pigments: Washed seeds are brushed under a

current of water to remove the hulls.

d) Drying : The dehulled wet seeds are dried in a cross-flow or fluidized bed

drier.

1.3 Quality Control and Standards : PFA Specifications

2.0 POLLUTION CONTROL There is no major pollution problem associated with this industry except for

disposal of waste which should be managed appropriately. The

entrepreneurs are advised to take "No Objection”. Certificate" from the

State Pollution Control Board.

SESAME SEED

21 | P a g e

3.0 ENERGY CONSERVATION The fuel for the steam generation in the boiler is coal or LDO depending

upon the type of boiler.

Proper care should be taken while utilizing the fuel for the steam production.

There should be no leakage of steam in the pipe lines and adequate

insulation should be provided.

3.1 PRODUCTION CAPACITY

Quantity : 280 TPA

Value : . 114.80 lakh

Installed capacity : 2 tpa

Working days : 200/annum

Optimum capacity utilization : 70%

Manpower : 18

Utilities Motive Power : 18 kW Water : 8 kL/day

4.0 FINANCIAL ASPECTS

4.1 Fixed Capital

4.1.1 Land & Building Amount ( . lakh)

Land 600 sq.m. : 0.75

SESAME SEED

22 | P a g e

Built up Area 150 sq. m. : 5.50

Total cost of Land and Building : 6.25

4.1.2 Machinery and Equipment

Description Amount ( . lakh) Seasame seed pre-cleaning unit, destoner, wire mesh basket, mixing tanks,

vibratory screen, pulper and mechanical drier. : 9.00

Erection & electrification @10% cost of machinery & equipment: 1.00

Office furniture & fixtures: 0.50

Total : 10.50

4.1.3 Pre-operative Expenses

Consultancy fee, project report, deposits with : 0.70

Electricity department etc.

Total Fixed Capital : 17.45 (4.1.1+4.1.2+4.1.3)

4.2Recurring expenses per annum

4.2.1 Personnel Designation No. Salary Amount Per month ( .lakh) Factory Manager 1 10000 1.20 Supervisory staff 2 5000 1.20 Office Assistant 1 5000 0.60 Skilled workers (7 months) 2 2500 0.35 Unskilled workers (7 months) 8 1500 0.84 Skilled workers (12 months) 4 1500 0.72

4.91 Perquisites @10% 0.49

SESAME SEED

23 | P a g e

Total : 18 5.40

4.2.2 Raw Material including packaging materials Particulars Qty.(MT) Rate Amount( . lakh) Raw sesame 315 28000 88.00 appox

Soda alkali 12 8500 01.02 appox

Hydrochloric acid 3 8000 00.24 appox

Jute bags 5600 no. 5 each 00.28 appox

Total: 89.54

4.2.3 Utilities Amount ( . lakh) Power 0.47

Water 0.01

Total: 0.48

4.2.4 Other Contingent Expenses Amount ( . lakh)

Repairs and maintenance@10% 1.45

Consumables & spares, others 0.60

Insurance 0.15

Total: 2.20

4.2.5 Total Recurring Expenditure Amount ( . lakh)

(4.2.1+4.2.2+4.2.3+4.2.4) 97.62

4.3 Working Capital 08.15

SESAME SEED

24 | P a g e

Recurring Expenditure for one month

4.4 Total Capital Investment Amount ( . lakh) Fixed capital (Refer 4.1.4) 17.45

Working capital (Refer 4.3) 08.15

Total: 25.60

5.0 FINANCIAL ANALYSIS

5.1 Cost of Production (per annum) Amount ( . lakh)

Recurring expenses (Refer 4.2.5) 97.62

Depreciation on building @5% 00.23

Depreciation on machinery @10% 01.00

Depreciation on furniture @20% 00.10

Interest on Capital Investment @12% 02.95

Total: 101.90

5.2 Sale Proceeds (Turnover) per year

Item Qty. Rate Amount (MT) per MT ( . lakh) Dehulled sesame seeds 280 41000 114.80 Packed in jute bags

5.3 Net Profit per year

= Sales - Cost of production

= 114.80 - 101.90

= . 12.90 lakh

SESAME SEED

25 | P a g e

5.4 Net Profit Ratio = Net profit X 100/Sales

= 12.9 X 100/114.80

= 11.24%

5.5 Rate of Return on Investment

= Net profit X 100/Capital Investment

= 12.9 X 100/25.60

= 50.39%

5.6 Annual Fixed Cost Amount ( . Lakh) All depreciation 1.33

Interest 2.95

40% of salary, wages, utility, contingency 3.23

Insurance 0.15

Total: 7.66

5.7 Break even Point

= Annual Fixed Cost X 100/Annual Fixed Cost + Profit

= 7.66 X 100/7.66 + 12.90

= 766/20.56

= 37.26%