India eyes Rs 1000 crore opportunity to export rapeseed to China

The China-Canada tariff war has opened up a Rs 1000 crore opportunity for India to export to Beijing rapeseed meal, a by product of mustard oil production. Such exports to China have gathered pace during past couple of weeks. The edible oil industry has also written a letter to the Centre requesting to start negotiations with China to relax some stringent conditions imposed on Indian rapeseed meal about a decade ago. Increased exports are likely to support the local mustard prices, which are suppressed now. China has imposed 100% duty on rapeseed meal and Canola oil as to retaliate against Canada's duties imposed on Chinese EVs."An opportunity has arose to export Indian rapeseed meal to China. India is surplus in rapeseed meal and can export additional half a million tonnes of rapeseed meal valued at around Rs.1,000 crores," said industry body Solvent Extractors' Association (SEA) in a letter written to the Ministry of Commerce.Till 2011, India used to export about 3-4 lakh tonnes of rapeseed meal to China. It was suspended due to Malachite Green contamination. China again allowed the import of Indian rapeseed meal with stringent conditions in 2026."Only five companies could fulfill the stringent conditions, of which, currently only two companies are actually exporting rapeseed meal to China," said BV Mehta, executive director, SEA.China, a major consumer of rapeseed meal, sources it from Canada and EU.China's retaliatory tariff of 100% on Canadian rapeseed meal, coupled with shortages in the European Union has led to a significant increase in global prices. "Given the current supply constraints and rising prices, India has a renewed opportunity to explore and recapture its lost share in the Chinese market," said SEA in the letter.Currently, Indian rapeseed meal is cheaper than the internationalarket by bout 35%. In India, mustard prices are suppressed due to India's growing used of grains for the Ethanol Blended Petrol (EBP) program.The Distillers Dried Grains with Solubles (DDGS), a by product of grain-based ethanol, which is increasingly substituting rapeseed and other oilseed meals in animal feed, has suppressed rapeseed meal prices.