India becomes China’s largest supplier of rapeseed meal due to tariffs on Canadian products

India has become the top supplier of canola meal to China after Beijing imposed tariffs on Canadian products. China imposed tariffs on Canadian canola meal and oil in March 2025, and in August imposed preliminary anti-dumping duties on canola imports. This led to prohibitive tariffs on all Canadian canola products, dramatically changing trade flows.

Canada supplied the majority of China’s canola meal imports until May 2025, but the impact of the tariffs quickly became apparent, according to a report by the U.S. Foreign Agricultural Service (USDA FAS). China’s domestic canola production is not meeting demand for animal feed and industrial needs, so the country is actively looking for alternative partners to replace Canadian supplies. The increase in imports from India comes amid a decline in domestic consumption of rapeseed meal in the country due to the increased use of dried distillers grains (DDGs) as feed, linked to higher ethanol blending levels.

Data from the Vegetable Oil Producers Association of India (SEA) confirms the trend: in July 2025, Indian rapeseed meal exports to China reached almost 100,000 tonnes. In the 2025/26 season, China expects to import 2.6 million tonnes of rapeseed meal – 400,000 tonnes more than previously forecast, but still the lowest figure in three years. Tariffs on Canadian rapeseed are likely to reduce overall rapeseed imports to China due to the limited number of certified suppliers.

Australia is in talks with China to develop a phytosanitary protocol after a ban on its market since 2020 due to the detection of blackleg. Access could be restored after a deal is reached and test shipments are successful. Excluding Canada and Australia, China’s canola imports in 2025/26 are forecast at 4.1 million tonnes — 700,000 tonnes below the previous estimate and the lowest in four years, the USDA said.

The report also highlights the rise in palm kernel meal imports to New Zealand, the world’s largest importer. In 2024/25, imports rose by 200,000 tonnes to a record 2.7 million tonnes as the country with a strong dairy industry uses palm kernel meal as a key feed for dairy cattle, accounting for almost 30% of global imports. After a reduction in livestock in 2022/23 MY due to environmental restrictions on fertilizers, consumption will increase as herds recover. Under normal weather conditions, imports in 2025/26 will be 2.5 million tonnes, down 200,000 tonnes. Indonesia dominates with a 60% share, followed by Malaysia with over 40%.

Tags: rapeseed meal, China, India, duties