Malaysia’s share in India’s palm oil imports rises to 35% in H1 2025, aided by tariffs and festive demand
Kolkata: Malaysia’s share in India’s palm oil imports rose to 35% in the first half of 2025, up from 30% in 2023, backed by price competitiveness, festive restocking, and favourable tariff changes, according to the Malaysian Palm Oil Council (MPOC).
Addressing the IVPA Global RoundTable @ 4.0 in Kolkata on Friday, MPOC Chief Executive Officer Belvinder Sron said monthly exports to India had rebounded to 2.5 lakh metric tonnes in May and June, after a brief slowdown post the October 2024 peak.
“We anticipate this positive trend will persist into the third quarter,” she said, adding that Malaysia supplies an average of 2.5 million metric tonnes of crude palm oil (CPO) to India annually.
The roundtable, themed “Navigating Trade, Tariffs and Trust,” also saw the MPOC sign a collaboration agreement with the Indian Vegetable Oil Producers’ Association (IVPA) to jointly promote the nutritional and sustainability profile of Malaysian palm oil in India.
Malaysia, the world’s second-largest palm oil producer, contributes 24% to global output, with most of its 19.34 million metric tonnes of production exported.
Domestic consumption stands at 3 to 3.5 million metric tonnes.
The rise in exports to India follows a revision in import duties in July 2025, which has made Malaysian CPO the most competitively priced edible oil in the Indian market.
This adjustment, coupled with sustained outreach by MPOC, has further strengthened Malaysia’s position, the council said.
Sron highlighted that while Malaysia’s palm oil production peaked at 19.9 million metric tonnes in 2017, planted area expansion has since plateaued in line with environmental commitments.
Instead, the sector has shifted focus to efficiency and sustainability.
As of 2025, nearly 90% of Malaysia’s palm oil plantations are certified under the Malaysian Sustainable Palm Oil (MSPO) standard, which is legally mandated and independently audited.
The MSPO 2.0 version, rolled out in January 2025, introduces stricter sustainability and ethical norms.
To counter negative consumer perceptions and “No Palm Oil” labels, MPOC is stepping up public engagement in India.
In March 2025, it partnered with the Oil Technologists’ Association of India (OTAI) to support local research on palm oil’s nutritional value.
On Friday, MPOC and IVPA announced a new consumer awareness campaign titled Bharat Ka Swaad Palm Oil Ke Saath, in collaboration with celebrity chef Shipra Khanna.
The campaign, airing on Zee TV from May to August 2025, showcases regional Indian cuisine using Malaysian palm oil and aims to promote its culinary versatility and health benefits.
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