Mumbai: In a significant shift in its agricultural imports, China has drastically increased its purchase of Indian rapeseed meal, seizing the opportunity presented by a 100% tariff on Canadian imports. This move not only bolsters India’s position in the global market but also underscores China’s strategic efforts to diversify its sources amidst trade tensions. Over the past three weeks, China has bought 52,000 tons of Indian rapeseed meal, marking a four-fold increase from its total imports from India in the previous year.
The core of this development lies in China’s retaliatory tariffs imposed on Canadian rapeseed meal and oil imports starting March 20. This measure is part of a broader trade dispute that saw Canada slap tariffs on Chinese-made electric vehicles and steel last year. India, the world’s third-largest rapeseed producer, has long struggled to tap into China’s vast market due to higher pricing compared to other suppliers like Canada. However, the current trade dynamics have presented India with an unprecedented opportunity to expand its exports.
Chinese buyers have been purchasing Indian rapeseed meal for prompt shipments at a price range of $220 to $235 per metric ton on a cost and freight basis. Historically, China has been heavily reliant on Canada for rapeseed meal imports, importing 2.02 million metric tons in 2024, significantly more than its purchases from other countries like the UAE and Russia. India, despite being a major producer, had limited success in exporting rapeseed meal to China, with China accounting for less than 1% of India’s exports.
Traditionally, South Korea, Bangladesh, Thailand, and Vietnam have been the primary destinations for India’s rapeseed meal exports. However, weak local demand has driven down Indian rapeseed meal prices to around $200 per ton on a free-on-board basis. As India sits on large stockpiles of rapeseed meal, the increased demand from China could help stabilize local prices while enhancing India’s export portfolio.
