W41: Sesame Seed Update

In W41 in the sesame seed landscape, the sesame seed industry in India is witnessing changes with both opportunities and challenges. Predictions indicate a rise in sesame seed production by 1.43% Year-on-Year (YoY) to 800 thousand metric tons (mt). Quality and contamination issues have hindered India's ability to compete in global markets, especially with the European Union (EU), which was previously a major market for Indian sesame seeds. Due to quality concerns, EU imports of Indian sesame seeds have decreased significantly. India is required to enhance its capability to meet export quality requirements to take advantage of increasing production potential and maintain competitiveness in international markets. Diversifying market destinations and addressing quality and regulatory concerns are crucial for India's sesame seed industry.

Furthermore, the Indian Council of Agricultural Research (ICAR) Research Complex for the North Eastern Hill (NEH) Region in Arunachal Pradesh hosted a farmer's field day focused on sesame seed production, particularly in the mid hills of Arunachal Pradesh. The event included participation from 20 farmer trainees from the Leparada district. The Head of ICAR provided insights into sesame cultivation and market opportunities in the region. The program featured lectures and a field visit, allowing farmers to gain hands-on experience and valuable knowledge.

Lastly, following the recent Chinese National holiday, Tanzania and Mozambique have become the primary sources of imported sesame seeds in the Chinese market. Traders have responded to post-holiday price increases in these countries by incrementally raising their prices. Pakistan's bulk shipments are pending and expected to arrive in China by late October. As of W42, sesame seed prices in southern Tanzania ranged from USD 2,053.14 to 2,135.26 (CNY 15,000 to 15,600). In Mozambique, white sesame seeds are priced between USD 2,039.39 and USD 2,094.20 (CNY 14,900 to 15,300). Ethiopian first-grade sesame seeds range from USD 2,217.39 to USD 2,272.14 (CNY 16,200 to 16,600). In Sudan, first-grade sesame seeds are priced from USD 2,094.20 to USD 2,162.64 (CNY 15,300 to 15,800).

As of October 11, the main sesame warehouse inventory at Huangdao Port was 123.7 thousand tons, marking a 33.59% month-on-month (MoM) increase but a 39.39% YoY decrease. Increasing prices have limited trade activities, with buyers purchasing only based on demand. Inventory is forecasted to recover with the arrival of Pakistani seeds, and rising futures prices are likely to prevent a significant price decline.