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Sesame seeds: The GST hurdle

June 29, 2017 at 10:55 AM , Der AUDITOR
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NEW DELHI. At the turn of the month, the market in India will be facing the Goods and Service Tax reform. This is less significant for the export market, but makes the handling for traders more complicated.

Traders are keeping a low profile

The last tender from Korea had no appreciable effect on the prices. However, a cause for concern for exporters and traders is the value added tax of 5% that will be added to sesame seed purchases as of 1 July 2017. Market players report that reimbursement of the value added tax can take several months. Assuming an average purchase price of 1,000 USD for one mt of non-hulled sesame seeds, traders have to pay an additional 950 USD up front for the export of one single container (approx. 19,000 mt). Accordingly, several traders are currently hesitating to make new offers.

Indian sesame seed prices

Type

USD/mt

Hulled, 99.95%

1,380

Natural

1,160

CIF Hamburg

Attached Files

File icon
Sesame seeds hulled price chart
File icon
Sesame seeds natural price chart

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