Nod for phosphine reopens Pakistan to Australian canola

Pakistan has reopened as a market for Australian canola following bilateral discussions which allow for phosphine fumigation of imported seed either pre-shipment or in transit.

This follows Pakistan’s March 5 rescinding of approval for fumigation of Australian canola with methyl bromide on arrival, which since 2021 has allowed Australia to supply one of its largest canola markets outside Europe.

Approval for phosphine fumigation follows discussions between Pakistani representatives and officials from the Australian Government’s Department of Agriculture, Fisheries and Forestry.

“As a result of these discussions, DAFF has confirmed that trade in Australian canola to Pakistan has been reinstated,” Grain Trade Australia said in an industry update issued April 22.

Australian Bureau of Statistics figures indicate that behind Germany, Pakistan on 192,240 tonnes was Australia’s second-biggest market for January-shipped canola in a month where 783,700t was shipped to all markets.

In February, when 524,845t was shipped to all markets, exports to Pakistan fell to zero, ostensibly in response to the fumigation issue, and latest figures out for March also indicate zero shipments.

The Australian Pesticides and Veterinary Medicines Authority does not permit methyl bromide fumigation of canola prior to its export or arrival at destination, so Pakistan’s move to accept phosphine fumigation was seen as the only solution to restoring the market.

Pakistan has now joined Bangladesh, Malaysia, and Mexico as a destination accepting canola fumigated with phosphine.

The European Union, Japan, Nepal, and the United Arab Emirates do not require Australian canola to be fumigated.

In the year to September 2024, ABS data released in November indicated Pakistan was the destination for 661,130t of canola out of the year’s total to all destinations of 6.1 million tonnes.

A less-than-ideal start for Australia’s new-crop canola in Victoria, South Australia, and the southern half of New South Wales means Australian growers and traders are reluctant forward sellers.

Pakistan is expected to return promptly as a buyer of Australian canola, but tonnage available to the rekindled market as Australia moves into the back half of the shipping year is likely to be restricted as uncommitted stocks run low.

Tags: Australia, canola, Pakistan, shipments, Market, phosphine, methyl bromide