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The general customs administration announced on its website that India could resume its rapeseed meal export to China as the neighboring country has dropped a year old ban if the shipments meet certain requirements.
The Chinese government is looking to increase the sources of protein in animal feed and so is looking to import the rapeseed meal from India. This move is also to decrease reliance on soybeans coming from the US as the two countries are locked in a trade war. About 60% of the soybean out of the world is bought by China to make it into soymeal which is used to feed the pig herds. China imports soybeans from the US as the top agricultural product seeing the value.
Before the ban imposed by China in 2011 over some quality concerns over the import of rapeseed meal from India, it was buying top buyer for the commodity. The Chinese Customs has told that the rapeseed meal that is to be exported from India needs to be from inspected and approved processing plants. The Export Inspection Council of India will be inspecting the plants and also these plants need to be registered with the Chinese Customs.
As per the industry, India has a surplus of about 500,000 tonnes of the commodity that it can easily export to China. However, registering with the Chinese authorities could be a long process. If the rapeseed meal prices increase the farmers can sow more of the crop.
Due to a trade war, between US and China, Beijing is looking out for alternative protein feeds for the animals and so had removed the taxes on soybean, soymeal and rapeseed coming in from five Asain countries which include India in July.