Eating Watermelon seeds as a pastime activity.

Eating Watermelon seeds as a pastime activity.

In the realm of snacks, watermelon seeds hold a modest place, often overshadowed by more popular choices. Divided into two types - the Jumbo (10-14mm) variety mainly demanded in the MENA region and the smaller Sadir grade (6-10mm) predominantly exported to the Indian market. Despite its unassuming reputation in the trading world, watermelon seeds have seen a surprising turn of events. Since 2021, their trading price has experienced a remarkable surge, boasting a staggering 366% increase. This unexpected trajectory invites us to explore the underlying factors propelling the transformation of these unassuming seeds into a notable player in the world of commodities.


WATERMELON SEEDS JUMBO GRADE
WATERMELON SEEDS SADIR GRADE

Past prices

  • Watermelon seeds' average prices in the Indian market ranged from $700 to $900.
  • The 2019-2020 season witnessed an all-time low of $400 due to the COVID-19 pandemic's disruptions.
  • A significant setback occurred during 2020-2021 when India imposed an import ban, impacting watermelon seed prices:
  • India imported over 50% of Sudanese watermelon seeds.
  • Exporters faced unsold stocks and frozen capital due to uncertainty.
  • The ban led to reduced demand, causing a substantial price drop, hitting farmers the hardest.
  • The ban's lifting in the following year, 2021-2022, triggered a remarkable recovery:
  • Prices started at $900 per metric ton and soared to a peak of $1,200.
  • This recovery highlighted the seeds' resilience and the intricate global factors influencing their trading trajectory.

By the time the recovery gained traction, many farmers had already shifted away from cultivating watermelon seeds, venturing into different commodities. The delayed rebound meant that farmers missed out on the advantages it could have brought.

In their bid to fund future farming endeavors, the farmers were compelled to sell their existing watermelon seed stocks at lower prices, sacrificing potential profits. While traders and exporters experienced some benefits from the price rise, it was the companies in India that emerged as the true beneficiaries. Procuring watermelon seeds at $800 - $1,200 levels, these companies capitalized on local market demand, selling them for approximately $1,800 or even higher.


The Blowback of the Import ban:

The aftermath of these events had far-reaching consequences, notably evident in the sharp decline in production during the 2022-2023 season. The ripple effect also gave rise to what some have termed the "watermelon seeds cartel." This coalition comprises the largest watermelon seed exporters in Sudan who have forged a strategic alliance, collaborating to navigate the challenges of each new season collectively.

Compounded by the impact of the war, where theft, destruction, and damage of warehouses, the scarcity of watermelon seeds intensified. Amid these challenges, Sudanese exporters united to present a unified front. They adopted a unified approach to selling, collectively agreeing upon minimum fair prices for their seeds. This move aimed to stabilize the market, protect their interests, and counterbalance the unpredictable fluctuations caused by external factors.

PRICES SINCE THE SUSPENSION OF THE IMPORT BAN

Analyzing the graph above reveals several noteworthy trends and periods of significance:

Price Trends:

- A consistent upward trajectory in prices has been observed from July until the present date, August 29, 2023.

- Prices experienced an increase from $2,500 to the range of $3,000 to $3,030.

- The lowest quoted price during this period was recorded at $2,300, indicating a fluctuation within the market.

- The highest price reached an impressive $3,030.


Waiting Game Period:

- From July 20 to August 2, a phase of anticipation prevailed in the market.

- During this period, prices remained stable, hovering between $2,300 and $2,500.

- Indian importers held out, anticipating a potential drop in prices.

- Meanwhile, Sudanese exporters opted to wait for higher prices.

- Notably, the local Indian market maintained a higher value at approximately $4,000.

- The looming deadline for cargo arrivals added a sense of urgency to the market dynamics.

- After August 2, an uninterrupted upward trend in prices commenced, signifying a shift in the market sentiment. With Sudanese exporters benefiting.

Price fluctuations in watermelon seeds from August 3rd to August 29th.

- The graph illustrates price fluctuations in watermelon seeds from August 3rd to August 29th.

- During this period, prices consistently rose, indicating an overall upward trend.

- The most substantial price increase, amounting to $130, occurred on August 21st.

- Another notable price surge of $90 was observed on August 15th, coinciding with India's Independence Day.


In retrospect, the unity among exporters has emerged as a with great benefits for the Sudanese watermelon seeds market. This collective approach has not only stabilized the industry but also demonstrated the power of collaboration in navigating challenges.

The import ban's impact on the watermelon seeds market is undeniable. It has posed significant obstacles, hindering growth, and limiting opportunities. The adverse consequences echo across the various players within the market, emphasizing the need for a new direction. Moreover, the import ban's continuation has created an unrealistic pricing scenario locally and India where reportedly prices reached $4,300 per MT, resulting in watermelon seeds' prices becoming uncompetitive in comparison to other markets, like the MENA region.

In my opinion removing the import ban is the best option for all stakeholders. The potential benefits extend beyond boundaries, offering a chance for farmers, traders, and exporters to thrive.

#watermelonseeds #agribusiness


Please note that the information shared above is based on personal observations and not sourced from official institutes. Its accuracy and authenticity cannot be guaranteed. Kindly consider this while using the provided information.

Author: Islam A Baasher.

Source: Authors’ compilation.?

Date: 30/08/2023

Fatah alrahman Omer

sales Marketing ..KWO smart

1 年

In my opinion we intersted in Watermelon seed And peanuts..can send prices Cif jebal Ali ..also India You can send at my whatsup +971554424079

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