The country bought more than 500,000 tonnes during the first half of 2026 after buying barely any in the past three years

Pakistan is back to buying large volumes of Canadian canola after a long hiatus.

“We were basically shut out of the market from 2023 to 2025 while Pakistan was making changes to its import requirements for genetically modified crops,” said Chris Davison, president of the Canola Council of Canada.

It took until late 2025 to update the country’s regulatory framework and get all the government approvals in place.

Trade has now resumed, with the country purchasing 506,656 tonnes of Canadian canola during the first six months of 2026.

That is up from 165,128 tonnes in 2025 and nothing in 2024 and 2023.

Pakistan has been Canada’s fifth-largest canola customer so far in 2026, ranking behind China, the European Union, Japan and Mexico.

Why It Matters

Canadian canola supplies could be robust with a large carry-in and good production prospects.

Before the new regulations, the country had been a variable market for Canada, with imports over the past 10 years ranging from 267,016 tonnes in 2022 to 1.35 million tonnes in 2016.

Davison said Pakistan is a promising market because it is the fifth most populated country in the world with 259 million people.

Sixty-five per cent of its population is younger than 30, and there is a growing middle class.

“We’re happy to see Pakistan back importing canola, and we look forward to that continuing in the future,” he said.

In July, Pakistan signed a new phytosanitary agreement with Canada for canola exports.

Davison said that should help provide smooth and predictable access to that South Asian country.

Western Producer Markets desk analyst Bruce Burnett is also happy the South Asian country has resumed purchasing.

“It’s obviously good news,” he said.

“Welcome back.”

He noted that prices for competing products like palm oil and soybeans are “robust” right now. Canola probably looks like a bargain to Pakistan due to its high oil content.

Canada might need all the help it can get in 2026-27 due to a sizeable carry-in of 1.73 million tonnes from the previous marketing campaign and Statistics Canada’s forecast calling for 21.6 million tonnes of production.

Burnett thinks production will be smaller than that, but the market won’t know for sure until the combines start rolling.

If he is right, then 2026-27 carryout will fall below Agriculture Canada’s current projection of 1.5 million tonnes.

Supplies could get tighter if demand from markets such as Pakistan continues to be strong.

Davison said the export market is still a vital component of demand despite the meteoric rise in Canada’s domestic crush volumes.

Agriculture Canada is forecasting eight million tonnes of exports in 2026-27, down from 9.1 million tonnes for the crop year that just ended.

That is still a lot of crop going out the door.

“The export market remains a critical part of the canola industry,” he said.

Domestic crush is forecast at 13.7 million tonnes, up from 12.5 million tonnes last year as expanded capacity in Regina and Yorkton is utilized.

Reference Link:- https://www.producer.com/markets/pakistan-is-back-buying-canadian-canola/

By GSRRA

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