China may open doors for soy­abean from In­dia

The Hindu Business Line - - COMMODITIES - AMITI SEN

China is likely to open its doors to soy­abean from In­dia af­ter al­low­ing the im­port of non-bas­mati rice and raw sugar to ad­dress the wors­en­ing trade im­bal­ance be­tween the two coun­tries, ac­cord­ing to se­nior gov­ern­ment of­fi­cials.

“With China no longer will­ing to pur­chase soy­abean from the US due to the on-go­ing trade dis­cord be­tween the two, there is a big op­por­tu­nity for In­dian soy­abean in the Chi­nese mar­ket. Se­nior trade of­fi­cials from both coun­tries dis­cussed the steps to start im­ports from In­dia dur­ing a re­cent meet­ing in Shang­hai,” an of­fi­cial told Busi­nessLine.

Soy­abean is one of the items on which China im­posed re­tal­ia­tory du­ties of 25 per cent against the in re­sponse to sim­i­lar levies im­posed by the Trump ad­min­is­tra­tion on Chi­nese prod­ucts.

“China, which buys more than half of the world’s soy­abean pro­duce, is im­port­ing huge quan­ti­ties from Brazil to re­place what it sourced from the US. Once it gives clear­ance to In­dian ex­porters, it can start buy­ing from In­dia too,” the of­fi­cial said.

China had al­ready cut im­port tar­iffs on soy­abean and soy­abean meals from Bangladesh, In­dia, Laos, South Korea and Sri Lanka in July to pre­pare for more im­ports from th­ese coun­tries fol­low­ing its re­duced pur­chases from the US.

“Ear­lier, Bei­jing had qual­ity is­sues with In­dian soy­abean but sev­eral steps have been taken in In­dia to en­sure com­pli­ance with glob­ally ac­cepted norms. HopeUS fully, qual­ity won’t be an is­sue now,” the of­fi­cial said.

Qual­ity in­spec­tors from China are soon ex­pected to visit In­dia to in­spect fa­cil­i­ties.

Bei­jing had im­posed a ban on im­port of soy­abean meals from In­dia in 2012 over san­i­tary and phy­tosan­i­tary is­sues. In­dia pro­duces 10-11 mil­lion tonnes of soy­abean an­nu­ally. In­dia’s to­tal soy­abean meal ex­ports jumped to 2 mt for oil year 2016-17 (Oc­to­berSeptem­ber) from 320,000 tonnes the pre­vi­ous year.

China has al­ready started im­port­ing non-bas­mati rice from In­dia and has placed or­ders for raw sugar, which will be shipped early next year. Th­ese steps are ex­pected to help nar­row the trade gap be­tween In­dia and China, which crossed $160 bil­lion last year.

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