India is likely to export 4-5 lakh tonne of soymeal and rapeseed meal this year following China's decision to cut import tariffs on soybean and some other goods from India, industry body Solvent Extractors Association of India (SEA) said.
China's cabinet has announced it will reduce tariffs on soybean imported from India, South Korea, Bangladesh, Laos, and Sri Lanka from the current three per cent to zero amidst a looming trade war with the US.
The tariff spat between China and the US followed pressure by US President Donald Trump to cut down USD 375 billion deficit in the bilateral trade. The US is a major supplier of soybeans to China.
"Tariff is not an issue for us. We have to see the details of China's take on its quarantine regulations on oilmeals, which needs to be sorted first. I expect there will be some changes or it might be waived off and in that case the exports is likely to go up to 4-5 lakh tonnes, 2-3 lakh tonne rapeseed meal," Mumbai-based trade body SEA Executive Director B V Mehta said.
Before 2012, India exported four lakh tonne of oilmeals (1 lakh tonne soymeal & 3 lakh tonne rapeseed meal) to China worth about Rs 600-700 crore, he said.