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Palm oil is now one of the key products that India brings in from other countries. Palm oil is used in a wide range of products, from everyday cooking to packaged foods and personal care products, such as cosmetics. India requires a significant amount of food, but it doesn’t produce enough to meet its needs, so it imports a substantial quantity. India import palm oil from countries like Indonesia and Malaysia every year to keep its food chain running smoothly. Here’s a better overview of how palm oil import in India is changing currently, India import palm oil from which countries, and why it remains so important to India’s economy.
Why Palm Oil Imports Are So Important
In India, almost every cook uses palm oil in some way. It’s affordable, versatile, and mixes well with other oils, making it great for cooking and everyday use. But India’s environment and farming system don’t allow for large-scale palm planting. This is why the country imports almost all of its palm oil needs.
When we talk about India import palm oil from which countries, we’re really talking about how it ensures it always has enough usable crude. Without these imports, prices would rise rapidly, causing significant damage to the food preparation industry.
An Overview of the Data on Palm Oil Imports
Despite some fluctuations, India’s palm oil imports have remained high.
India imported approximately 6.6 million tons of palm oil, valued at $8.49 billion, in 2022. Imports reached USD 8.7 billion by 2024, indicating steady demand despite fluctuating prices.
Trade data shows that more than half of all the food oils that India buys are palm oil. However, due to changes in duties and higher prices worldwide, imports decreased slightly in 2024–25 to approximately 7.8 million tonnes.
It’s clear from these numbers that India’s food economy relies heavily on palm oil, despite the government’s efforts to increase domestic food production.
Which countries does India buy palm oil from?
Most of India’s palm oil comes from Southeast Asia, where prices are low due to the presence of large farms and well-established supply lines. Take a quick look at the top suppliers.
| Country | Share in India’s Imports | Key Highlights |
| Indonesia | Around 37% | The world’s largest palm oil producer and India’s biggest supplier. |
| Malaysia | Around 39% | Known for refined palm oil with stable quality and pricing. |
| Thailand | About 7% | Smaller but growing share in India’s imports. |
| Others | Minor share | Includes Papua New Guinea, the Philippines, and Latin America. |
Indonesia and Malaysia supply India with almost 80% of its palm oil needs. The rest of it comes from new producers who offer low prices.
Reasons for India’s Palm Oil Imports?
- A combination of economic considerations and practical factors sustains the vigorous expansion of the palm oil business in India.
- Palm oil is cheaper than other beneficial oils, such as soybean or sunflower, which is why many people and food manufacturers choose it.
- India’s demand for cooking oil continues to rise annually, driven by the country’s growing population and expanding middle class.
- Indian palm oil production is relatively low; less than 10% of the country’s total demand is met by oil produced domestically.
- Not only is palm oil used in food, but it is also used in soaps, cosmetics, and as a fuel source.
- In short, palm oil isn’t just used for cooking; it’s an integral part of the Indian economy.
Also Read This: India Bans Wheat Exports: What It Means for Farmers and Trade
The most significant problems facing the palm oil market
India has been able to meet its needs through palm oil imports for many years, but the country now faces some significant challenges.
- Dependence on only a limited number of supplier countries renders India susceptible to disruptions in the supply chain.
- India’s import bill and market oil prices are affected by changes in prices worldwide.
- Environmental concerns about deforestation and planting methods have led to international scrutiny of palm oil.
- A weak rupee makes it more expensive for customers to buy goods, which in turn drives up prices.
- India has to reassess its long-term plan for cooking oil due to these issues.
Wrapping It Up
India still needs to buy a lot of things, and palm oil import in India remains one of the most essential. It helps the fast-moving consumer goods (FMCG) industry, keeps food affordable, and maintains price stability in the cooking oil market. India is taking steps to increase production at home, but imports will still be very important to meet the increasing demand.
Finding out India import palm oil from which countries shows how closely global trade and local kitchens are connected, from the plantations of Indonesia and Malaysia to the frying pans of Indian households.
FAQs
India brings in about 8–9 billion USD worth of palm oil every year, which is about 7–8 million tonnes.
Most of the palm oil india imports is from Malaysia and Indonesia. It also gets some from Thailand and other Southeast Asian countries.
Domestic palm oil production is constrained. Keeping prices stable for consumers and companies is helped by imports, which help meet increasing customer demand.
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