According to a report by Reuters on April 8 local time, after imposing a 100% tariff on rapeseed oil and rapeseed meal originating from Canada, China increased its imports of Indian rapeseed meal.
Industry insiders said that in the past three weeks, China has imported 52,000 tons of Indian rapeseed meal, which is four times the total amount of Indian rapeseed meal imported by China in 2024.
The report pointed out that Indian rapeseed meal exports will help replace China's imports from Canada while alleviating the pressure on domestic rapeseed prices in India. India currently has a large stockpile of this product widely used in animal feed.
"In the past few weeks, due to the additional tariffs imposed on Canada, Chinese buyers have begun to show interest in Indian rapeseed meal," an official from a major rapeseed meal exporter said.
On March 8, the Tariff Commission of the State Council issued an announcement regarding the imposition of additional tariffs on certain imports originating from Canada. It stated that rapeseed oil, rapeseed meal, and peas would be subject to a 100% tariff.
Insiders said that China purchased Indian rapeseed meal at a price ranging from $220 per ton (approximately RMB 1614.6) to $235 per ton (approximately RMB 1724.6), including the cost and freight of the goods.
Reuters noted that as the third largest producer of rapeseed in the world, India has struggled to export large quantities of rapeseed meal to China due to higher prices. The media cited Chinese customs data stating that in 2024, China imported 2.02 million tons of rapeseed meal from Canada, 504,000 tons from the UAE, and 135,000 tons from Russia, while only importing 13,100 tons from India.
It is reported that India exported more than 2 million tons of rapeseed meal, and China's import volume accounted for less than 1% of its total exports.
Insiders said, "China's demand is huge. If the current purchasing momentum continues over the next few months, the country may become one of the largest buyers of Indian rapeseed meal."
It is known that South Korea, Bangladesh, Thailand, and Vietnam have traditionally been the main markets for Indian rapeseed meal exports.
B.V. Mehta, executive director of the Solvent Extractors' Association of India (SEA), said that considering the domestic surplus and global shortage, India's shipments this year could increase from around 2 million tons to approximately 2.5 million tons.
According to reports, SEA data showed that weak domestic demand has pushed the offshore price (FOB) of Indian rapeseed meal down to around $200 per ton, compared to $248 in February and $278 a year ago.
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