Image showing a rapeseed field. For representational purposes.
Credit: iStock Photo
New Delhi: 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 $209 per tonne free alongside ship (FAS) at Kandla port, substantially lower than the $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.