May 26, 2015
India's exportation of rapeseed meal to China was suspended by the Chinese government three years ago, but the recent signing of a sanitary protocol between both nations will ensure the resumption of deliveries.
The agreement requires that Indian's rapeseed meal fulfills Chinese standards since exports had been banned over quality issues, according to China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).
The protocol came into force after the visit of Indian Prime Minister Narendra Modi to China this month.
India had once dominated about half of China's annual importation of rapeseed meal in 2011 until the discovery of a toxic chemical in some meals led to a ban on shipments.
Moreover, China's growing domestic crushing sector and a falling demand for meal eventually contribute to a significant drop in imports of rapeseed meal. The local industry is currently the main supplier of meal to southern provinces including Fujian and Guangxi.
When permitted into the Mainland, India's rapeseed is expected to compete against deliveries from Canada which were priced about 20% more in 2011, according to CNGOIC.
It could also gain popularity among buyers in the northern parts of China, said Lu Yun, an analyst from Shanghai JC Intelligence Co. Ltd (JCI).