India eyes Chinese market as global rapeseed meal prices surge

New Delhi, Apr 20 (PTI) India may become a key supplier of rapeseed meal to China if Beijing eases its stringent trade restrictions on the commodity, according to industry body Solvent Extractors Association of India (SEA).
     A shortage of rapeseed meal in the European Union has driven global prices significantly higher. China, a major consumer, currently imports the protein-rich animal feed primarily from Canada and the EU.
     "Given the current supply constraints and rising prices, India has a renewed opportunity to explore and recapture its lost share in the Chinese market," Mumbai-based SEA said in a statement.
     Indian rapeseed meal is currently priced at USD 209 per tonne free alongside ship (FAS) at Kandla port, substantially lower than the USD 335 per tonne being quoted ex-Hamburg in the international market.
     "Leveraging this opportunity could not only boost India's exports but also help stabilize prices in the international market," SEA added.
     India, the world's third-largest rapeseed producer, historically exported over 2 million tonnes of rapeseed meal annually.
     However, China has accounted for less than 1 per cent of that volume due to higher prices and previous trade restrictions.

(This story has not been edited by THE WEEK and is auto-generated from PTI)