India seeks opportunity in its lower rapeseed meal prices to strengthen its position in the Chinese rapeseed market

India is seeking to reclaim its market share in China’s rapeseed meal imports, leveraging its competitive pricing amid global supply shortages. The Solvent Extractors' Association (SEA) has highlighted that Indian rapeseed meal is priced lower than international rates, presenting an opportunity to expand exports to China. The association has requested the Ministry of Commerce to engage with Chinese authorities to ease import restrictions, as currently, only three Indian processing plants are approved by China’s General Administration of Customs for rapeseed meal exports.

China, a significant importer of rapeseed meal for animal feed, primarily relies on Canada and the European Union. However, tightening supplies and rising prices in these regions have created an opening for India to re-enter the market, provided China relaxes its import regulations.

Meanwhile, India’s oilmeal exports are facing increased competition from Distillers Dried Grains with Solubles (DDGS), a by-product of ethanol production that is gaining popularity as a protein-rich feed alternative. The SEA noted that DDGS is gradually replacing traditional feed ingredients such as soybean meal, rapeseed meal, and de-oiled rice bran, which could slow the growth of conventional oilmeal exports. The industry may need to adopt strategic measures to maintain demand in crucial markets.

On the domestic front, India has reported a record soybean harvest in the kharif season and a strong rapeseed-mustard crop in the rabi season, leading to higher crushing volumes and increased meal availability. However, export demand remains subdued due to pricing disparities in the global market. In April 2024, oilmeal exports saw a marginal increase, with rapeseed meal shipments totaling 213,023 tonnes and soybean meal exports reaching 230,743 tonnes.