China drops ban on rapeseed meal from India

BEIJING/MUMBAI: China has dropped a years-long ban on rapeseed meal imports from India as the government seeks to diversify resources of protein used in animal feed, the customs administration said on Monday.
Rapeseed meal shipments from India can resume from Monday if they meet certain inspection and quarantine requirements, the General Administration of Customs said on its site.

The transfer is China's newest effort to cut back its reliance on US soybeans, as Beijing and Washington remain locked in an outright business battle.

China buys 60 percent of the soybeans traded international, processing them into soymeal to feed its vast pig herds. Soybeans are the top US agricultural export to China by way of value.

China was the top buyer of Indian rapeseed meal prior to the ban was imposed in 2011 over quality concerns. As Sino-US business tensions escalated, India stepped up its lobbying for the restart of a business value $161 million in 2011.

Indian rapeseed meal exported to China will have to be from processing vegetation inspected and authorized by way of the Export Inspection Council of India, and registered with China's General Administration of Customs, the Chinese body said on its site.

"This is a very good development that we were expecting. But still exporters need to register with Chinese authorities and it is a lengthy process," said B V Mehta, government director of the Solvent Extractors' Association of India, an trade body.

India has an plentiful surplus to export 500,000 tonnes of rapeseed meal to China every year, Mehta said.

Rapeseed futures in India jumped greater than 1 percent on Monday to 4,222 rupees ($57.48) in line with 100 kg.

Farmers in India have began planting rapeseed, the rustic's major winter-sown oilseed crop, a Mumbai-based dealer of fit for human consumption oils said.

"Farmers will expand the area under rapeseed if prices rise in the next few weeks due to Chinese demand," the dealer said.

China imposed tariffs of 25 percent on an inventory of American merchandise together with soybeans on July 6, in keeping with US tasks on Chinese items value a an identical amount.

The retaliative measures will most probably tighten supplies of the oilseed in the fourth quarter, when US beans generally dominate the market, and push up costs of soymeal.

Beijing is mulling capping protein levels in pig and poultry feed, and seeking ways to import extra alternative foods equivalent to rapeseed meal and sunflower meal.

In July, Beijing removed tariffs on soybeans, soymeal and rapeseed from 5 Asian international locations together with India.

China drops ban on rapeseed meal from India China drops ban on rapeseed meal from India Reviewed by Kailash on October 23, 2018 Rating: 5
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