Market info - Sesameseeds
The Indian Oilseeds and Produce Export Promotion Council (IOPEPC) had a meeting with the European Commission at the beginning of the week. Sesame seed traders hope that all issues will be resolved soon.Talks held between the IOPEPC and the European Commission have given rise to hopes that an agreement may be reached over the way test are conducted for ethlyne oxide and other pesticides within two to three weeks. With the alteration to EU regulation 2019/1793, which became effective at the end of October, every second sesame seed shipment must be tested for ethylene oxide on entering the EU. The EU limit is 0.05 mg/kg. Issue is that tests showed values ranging 600 times higher than permitted in September and several food products containing sesame seeds had to be recalled in more than twenty EU member states.
This situation prompted a supply squeeze in Europe and prices have risen sharply. The lack of demand from Europe has prompted prices in India to remain relatively firm. Only the recent tender from South Korea has prompted nominal corrections. Exporters in India reckon that prices will rise as soon as demand picks up again in Europe.
Harvesting has been completed in Nigeria and in Burkina Faso. Although production ranges on a similar level as last year, demand has picked up in China and driven up prices by 10-15%. Traders in India have also stepped up purchases and reckon that shipments will start at the end of December or in January, as soon as the situation improves in Sudan's ports.