Indian Rapeseed Meal Exports to China Poised for Sharp Growth

10-Apr-2025 04:37 PM

Mumbai: Indian rapeseed meal (mustard khal) exports to China are expected to rise significantly following China’s decision to impose a 100% import duty on Canadian canola.

In just the last three weeks, Chinese importers have purchased around 52,000 tonnes of Indian rapeseed meal—four times more than all of 2024, signaling strong future demand.

The sharp increase follows a retaliatory move by China after Canada raised tariffs on some Chinese goods. As a result, Chinese buyers are now turning to India, the world’s third-largest mustard-rapeseed producer, to meet their demand for oil meal.

Trade analysts say this development could ease the oversupply pressure in India, where mustard meal stocks are already high due to strong domestic production. Current contract prices range from $220 to $235 per tonne, including shipment.

In 2024, China imported over 20.20 lakh tonnes of rapeseed meal from Canada, 5.04 lakh tonnes from UAE, and 1.35 lakh tonnes from Russia, but only 13,100 tonnes from India.

With the new tariff structure in place, India has a chance to become a key supplier to China—offering much-needed relief to Indian exporters and potentially reshaping trade dynamics in the sector.