sesame seed industry
TRANSCRIPT
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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
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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
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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
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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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
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• 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.
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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
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• 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.
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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.
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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
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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.
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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.
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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
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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
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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
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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
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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%