China may open door for soabean from India,will it reduce India's Trade Deficit with China
Context China is likely to open its doors to soyabean from India after allowin g the import of non-basmati rice and raw sugar to address the w orsening trade imbalance between the two countries, according to s enior government officials. Soyabean is one of the items on which China imposed retaliatory d uties of 25 per cent against the US in response to similar levies imp osed by the Trump administration on Chinese products.
"China, which buys more than half of the world's soyabean produce, is impo rting huge quantities from Brazil to replace what it sourced from the US. Onc e it gives clearance to Indian exporters, it can start buying from India too," 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 mor e imports from these countries following its reduced purchases from the US "Earlier, Beijing had quality issues with Indian soyabean but several steps h ave been taken in India to ensure compliance with globally accepted norms. Hopefully, quality won't be an issue now," the official said. Quality inspectors from China are soon expected to visit India to inspect facil ities. 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 to tal soyabean meal exports jumped to 2 mt for oil year 2016-17 (Oct ober-September) from 320,000 tonnes the previous year. China has already started importing non-basmati rice from India arn d has placed orders for raw sugar, which will be shipped early next year. These steps are expected to help narrow the trade gap betwe en India and China, which crossed $160 billion last year.
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Pankaj Kumar ( BA honours in Economics,with Math,polity and Economics) under Punjab University chandigarh..Currently doing M.A in economics.