Sesame Tender Re-Bidding TRQ Awards

State-Backed 8th Re-Bidding for 2024 Sesame TRQ Awards 3,000 Tons to Multiple Importers. The 2024 Tariff Rate Quota (TRQ) auction held by the government successfully concluded on November 6, allocating sesame imports to five domestic agents amid high demand and competitive bidding.

On November 6, 2024, the South Korean government conducted its 8th re-bidding for the 2024 Tariff Rate Quota (TRQ) on sesame imports. The auction, which targeted general sesame products, was part of the state’s TRQ allocation for the year, allowing importers to bring in sesame at specified tariff rates under a controlled quota system. This TRQ was established to manage sesame imports, stabilize the domestic market, and ensure competitive pricing for local businesses. With a delivery deadline of December 20, 2024, the government awarded the entire bidding quantity of 3,000 tons.

The TRQ process is essential for as it balances domestic demand with controlled imports, providing sesame at regulated prices to meet the needs of food producers, wholesalers, and other end-users reliant on sesame seeds in various applications.

Details of the Winning Bidders and Bid Prices

The 8th re-bidding process involved competitive bids from multiple domestic agents, each vying for a share of the allocated quantity. The bidders represented companies with ties to origins such as Pakistan, Tanzania, India, and Nigeria, showing the diversity of sesame sourcing regions.

The final allocation is as follows, with each bidder’s quantity, origin, and winning bid price (CFR USD/Ton):

1. Jupiter Agricultural Corporation
   • Origin: Pakistan
   • Quantity Awarded: 600 tons
   • Bid Price: $1,741.00 per ton
2. Yoon International
   • Origin: Pakistan
   • Quantity Awarded: 600 tons
   • Bid Price: $1,747.00 per ton
3. Indiagro Co., Ltd.
   • Origin: Tanzania
   • Quantity Awarded: 900 tons
   • Bid Price: $1,749.00 per ton
4. CS MRO
   • Origin: India
   • Quantity Awarded: 600 tons
   • Bid Price: $1,749.00 per ton
5. CGI Co., Ltd.
   • Origin: Nigeria
   • Quantity Awarded: 300 tons
   • Bid Price: $1,749.00 per ton

Understanding the 2024 TRQ Auction Process

The TRQ, or Tariff Rate Quota, allows certain quantities of sesame to be imported at a controlled rate. Helping to mitigate price volatility and ensure a steady supply. This system is designed to support domestic demand while protecting local agriculture from market disruptions. In this 8th re-bidding round, the auction successfully allocated 3,000 tons, which was also the total bid quantity.

Each company participating in the bidding represents a domestic agent authorized to import sesame. Their bid prices reflect competitive CFR (Cost and Freight) rates, which cover transportation costs to ensure timely arrival by the specified date of December 20, 2024.

Insights into the Auction Outcomes

The diversity in origins — Pakistan, Tanzania, India, and Nigeria — underscores reliance on multiple sources to fulfill sesame demand. Notably, Tanzania and India matched the highest bid price of $1,749.00 per ton, indicating competitive market rates for premium quality sesame.

The awarded contracts are expected to positively impact the domestic supply chain, meeting the demands of food manufacturers, retail sectors, and other industries dependent on sesame. These imports are part of a broader effort by the government to stabilize the domestic market for sesame and other essential commodities.

What This Means for Sesame Market

The TRQ’s controlled bidding process helps regulate import costs, providing predictability for businesses. As the awarded quantities arrive in December, they will play a vital role in supporting domestic demand during the high-consumption winter season.

This latest round of re-bidding reaffirms the state’s commitment to a stable sesame supply chain, with additional re-bidding rounds potentially on the horizon if demand continues to surge. Importers, manufacturers, and other stakeholders will watch closely to gauge future government auctions and TRQ allocations in the evolving sesame market.

Summary

The 8th re-bidding of the 2024 Sesame TRQ underlines the importance of the quota system in balancing sesame imports to meet demand while controlling prices. By sourcing from a mix of origins, it ensures supply security and competitive pricing. Ultimately benefiting businesses and consumers alike.





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