Rapeseed Meal Exports Likely to Rise on Strong Chinese Demand

21-Apr-2025 01:34 PM

New Delhi. India’s rapeseed meal (mustard cake) exports are expected to perform better in the financial year 2025-26, following a dip last year.

According to the Solvent Extractors Association of India, exports dropped to 18.75 lakh tonnes in 2024-25, down from 22.13 lakh tonnes the previous year.

This also led to a decline in export earnings from Rs. 5311 crore to Rs. 4232 crore, with the average export price falling to Rs. 22,570 per tonne from Rs. 23,990.

The outlook for the current fiscal is more positive. China's rising interest in Indian rapeseed meal is a key factor. Previously, China relied heavily on canola meal imports from Canada.

However, a trade dispute between the two countries has resulted in China imposing a 100% customs duty on Canadian canola products from March 20, 2025. As Canadian imports halt, Chinese buyers are turning to India for their needs.

With a good supply of mustard from the new crop, India is well-positioned to meet this demand. Increased exports could help strengthen domestic mustard prices, providing much-needed support to farmers.

Indian rapeseed meal also enjoys a pricing advantage globally — currently offered at $209 per tonne at Kandla port, compared to the international benchmark price of $335 per tonne in Hamburg.