Sesame Spring Snapshot Update

Date: 30th March 2021 Category: Latest News
Sesame Spring Snapshot Update

Due to EU health authorities refusing sesame seeds imported from India, hulled sesame prices have skyrocketed since the end of 2020. Ethylene Oxide was used by India to remove salmonella, and this was discovered by EU health authorities.

Since India is the world's largest exporter of hulled sesame seeds, there was a serious shortage in the EU market, causing hulled sesame seed prices to explode.

India

Due to Ethylene Oxide concerns, Indian hulled sesame seeds were rejected from the EU market for a few months. However, some Indian exporters have reintroduced sesame to the EU market. While we expected lower offers once Indian hulled sesame seeds returned to the EU market, their prices have remained stable at a high price.

The following are the reasons for this: 1. India sold huge quantities to Asia. 2. In comparison to the previous year, freight prices have risen by more than 300 %.

Summer New Crop:

The sesame crop in Gujarat and Bengal has increased over the previous season. According to our knowledge, the Bengal sesame crop could reach 250,000 MT this summer, up from 180,000 MT last season. Bengali sesame is usually used for oil rather than hulling. This rise in crop size may have an effect on the industry as a whole.

Summary:

Based on our research, we believe that the supply of sesame outnumbers the demand. Any of the reasons are that there are currently 200,000 MT to 250,000 MT of stocks at the port in China. In addition, some sesame origins still have stocks. Furthermore, new crops are doing well. As a result, we believe natural sesame seeds will remain healthy.

The EU hulled sesame seed market is heavily reliant on India. If India resumes exporting to the EU in the same quantities as before, without any pesticide or salmonella issues, we assume prices will remain stable with little space for price increases.

It is also difficult because final buyers are reluctant to purchase Indian sesame because of possible EU issues.