According to a report, a tariff dispute between China and Canada has presented India with a business opportunity worth 10 billion Indian rupees (about 855 million yuan) to export rapeseed meal to Beijing. For weeks, India has been accelerating the export of this commodity to China.
The Indian edible oil industry has called for negotiations with China to relax some of the stringent conditions imposed on Indian rapeseed meal about a decade ago. The increase in exports is likely to support the currently subdued local mustard seed prices. China imposed a 100% tariff on Canadian rapeseed meal and rapeseed oil in retaliation for Canada's tariff on Chinese electric vehicles.
The Indian Solvent Extractors' Association (ISEA) wrote to the Ministry of Commerce, stating, "An opportunity has emerged to export Indian rapeseed meal to China. There is a surplus of Indian rapeseed meal, and an additional 500,000 tons, worth about 10 billion rupees, can be exported."
India used to export large quantities of rapeseed meal to China until 2011. Exports were suspended due to the detection of malachite green contamination in Indian rapeseed meal. Later, China allowed the import of Indian rapeseed meal again, but with strict conditions.
B. V. Mehta, the executive director of the ISEA, said, "Only five companies can meet these strict conditions, and currently only two of them are actually exporting rapeseed meal to China."
China is a major consumer of rapeseed meal and imports a large amount from Canada. China's 100% retaliatory tariff on Canadian rapeseed meal has led to a rise in the global price of rapeseed meal.
The ISEA said in its letter, "Given the current supply constraints and rising prices, India once again has an opportunity to explore and regain its lost share in the Chinese market."
Currently, the price of Indian rapeseed meal is 35% lower than the international market price.
