Pakistan Resumes Import of Australian Canola Following Phosphine Fumigation Approval
Pakistan has resumed the import of Australian canola after successful negotiations between representatives of both countries, allowing the use of phosphine fumigation for seed treatment prior to shipment or during transport. This decision marks a crucial step in restarting trade relations with this important market for Australia outside of Europe.
This is reported by AgroReview
Changes in Phytosanitary Requirements and Their Impact on the Market
In March, Pakistan revoked the approval for methyl bromide fumigation of Australian canola upon arrival, which had enabled significant volumes of the crop to be exported there since 2021. Following negotiations with the Australian Department of Agriculture, Fisheries and Forestry (DAFF), the parties agreed to switch to phosphine as the primary treatment method. Grain Trade Australia confirmed on April 22 that canola shipments to Pakistan have officially resumed.
According to the Australian Bureau of Statistics, in January, Pakistan ranked second among importers of Australian canola after Germany, purchasing 192,240 tons out of a total export of 783,700 tons. However, in February, following changes in fumigation requirements, shipments to Pakistan fell to zero, and this trend continued in March.
Global Approaches to Canola Treatment and Export Prospects
As the Australian Pesticides and Veterinary Medicines Authority prohibits the use of methyl bromide for fumigating canola prior to export or upon arrival, the approval for phosphine use has become the only way to continue trading with Pakistan. Countries accepting phosphine-treated canola now include not only Pakistan but also Bangladesh, Malaysia, and Mexico. Meanwhile, importers that do not impose fumigation requirements for Australian canola remain the European Union, Japan, Nepal, and the United Arab Emirates.
“According to data for the year ending September 2024, Pakistan imported 661,130 tons of canola from a total Australian export of 6.1 million tons.”
However, despite the resumption of trade, the start of the new canola harvest in the Australian states of Victoria, South Australia, and southern New South Wales remains limited. As a result, farmers and traders are cautious about entering into contracts for future supplies, and the volumes of canola available for export to Pakistan in the second half of the current export year are likely to be small due to low product stocks.