Chennai, Jan. 30: China has suspended imports of rapeseed meal from India from January 1 since some consignments were found contaminated with malachite green. But trade sources feel there could be more than contamination.
According to documents available with Business Line, the Indian consulate in Beijing was informed by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) or the Chinese quarantine authority last week.
Indian rapeseed consignments to China last year were found contaminated with malachite green that is feared to cause cancer if the level exceeds stipulated norms.
Following the Chinese complaints, the industry here carried out a study to find out the source of contamination. The study, undertaken by the Export Inspection Council of India, found out that the primary source was the green dye used on jute bags to print identification marks.
NOT CONVINCED
The report, to have been submitted to the Chinese on September 17, was forwarded only a couple of weeks ago. The AQSIQ authorities, it is learnt, is not convinced with the Indian explanation.
Trade sources say the reason for the suspension could be different. “It could be in retaliation for the ban imposed by India on Chinese milk products,” a source who did not want to be identified said.
India had banned Chinese milk products, including chocolates, after it was reported to have been contaminated with melamine, a dangerous chemical that led to the death of four children in China. The ban has been in force since 2008 and was recently extended till June.
“China is known for such tactics. Last year, it stopped buying Argentine soyabean oil for a couple months before it ran out of stock and resumed buying. Even in the case of India, it is buying soyameal while stopping rapeseed meal,” the source said.
The source said that consignments that were contracted at higher price were not allowed, while those booked at lower price were accepted.
VALUABLE MARKET
The industry, on the other hand, does not want to lose a valuable market such as China which buys four lakh tonnes of rapeseed meal and three lakh tonnes of soyameal from India.
Last season (October 2010-September 2011), China had bought 4.05 lakh tonnes of rapeseed meal valued at Rs 400 crore against 2.6 lakh tonnes valued at Rs 280 the previous year.
Canada is another major source of rapeseed meal to China, accounting for nearly 55 per cent of the market share there. Some Chinese buyers prefer it because of higher profit margins they are able to get from the Canadian meal. A Reuters report quoting a Chinese importer said that he was not unduly worried over the ban since Canadian consignments would help them tide over any crisis apart from the domestic crop.
The suspension will be in force until India and China sort out the issue.
The Solvent Extraction Industry has urged the Chinese authorities to visit the extraction plant to get first hand information of the situation. An AQSIQ delegation is likely to visit the country soon to study the situation.
On the other hand, the Solvent Extraction Association of India has told all its members to not buy rapeseed or rapeseed make in jute bags with green markings. They have also been asked to ensure that jute bags used for packing the meal are not marked with malachite green dye even for domestic supply.
Source : thehindubusinessline.com