India Crude Petroleum HS2709 Import Data 2025 January Overview

India Crude Petroleum (HS 2709) 2025 January Import: Key Takeaways

India's Crude Petroleum (HS Code 2709) imports in January 2025 reveal a high-risk, high-reward supply chain dominated by Russia, which delivers premium-grade crude at a premium price, while Iraq and Kuwait supply bulk volumes at lower costs. Buyer concentration remains tight, with a handful of key suppliers controlling the market, exposing India to geopolitical and pricing volatility. The data, sourced from the cleanly processed yTrade database, highlights Russia's strategic role, accounting for 34.08% of import value but just 4.95% of quantity—a clear indicator of higher-grade crude. Diversification efforts are emerging, with smaller suppliers like the US and Brazil offering niche alternatives, but reliance on a few major players persists. This analysis underscores the need for long-term contracts and flexible sourcing to mitigate risks in India's Crude Petroleum Import 2025 January landscape.

India Crude Petroleum (HS 2709) 2025 January Import Background

What is HS Code 2709?

HS Code 2709 refers to petroleum oils and oils obtained from bituminous minerals, crude, a critical commodity for energy production and industrial applications. It is the primary feedstock for refineries, powering sectors like transportation, manufacturing, and petrochemicals. Global demand remains high due to its irreplaceable role in energy security and economic activity.

Current Context and Strategic Position

In March 2024, India’s Directorate General of Foreign Trade (DGFT) amended export conditions for crude oil under HS Code 2709 00 10, allowing ADNOC Marketing International to re-export from strategic reserves [TaxGuru]. For India Crude Petroleum HS Code 2709 Import 2025 January, reliance on imports persists, with domestic production covering only 11% of consumption (ReadOn). Geopolitical shifts, such as heightened imports from Russia, underscore India’s strategic balancing act between energy security and trade diversification. Vigilance is essential amid volatile global markets and evolving policy landscapes.

India Crude Petroleum (HS 2709) 2025 January Import: Trend Summary

Key Observations

India's Crude Petroleum imports under HS Code 2709 in January 2025 totaled $18.40 billion, reflecting the country’s continued heavy reliance on foreign oil to meet domestic energy demand.

Price and Volume Dynamics

The import value for January 2025 appears stable on a month-over-month basis, with no sharp fluctuations evident from the available data. This aligns with typical seasonal patterns in the oil industry, where post-winter demand often supports steady import levels. Year-over-year, the high import value underscores India’s structural dependency on crude imports, given limited domestic production capacity.

External Context and Outlook

Recent policy adjustments have influenced trade flows, including a March 2024 DGFT amendment that eased re-export rules for specific entities like [ADNOC Marketing]. This regulatory shift, alongside sustained high import volumes as noted in industry reports (GTAIC), supports ongoing import activity despite global price volatility. Looking ahead, India’s crude procurement strategy will likely remain shaped by both policy flexibility and energy security needs.

India Crude Petroleum (HS 2709) 2025 January Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, the import of India Crude Petroleum under HS Code 2709 in January 2025 is entirely concentrated on crude petroleum oils, with this single sub-code holding a 100% share by both value and weight. The product description confirms it as crude oil, indicating a highly specialized import focus without any unit price data available for disparity analysis.

Value-Chain Structure and Grade Analysis

The structure is simple, with no other sub-codes present, meaning all imports fall under the crude petroleum category. This points to a trade in fungible bulk commodities, where crude oil is typically homogeneous and traded based on global market indices rather than differentiated grades or value-added stages.

Strategic Implication and Pricing Power

India's heavy reliance on crude oil imports, as highlighted by sources like [ReadOn] where domestic production covers only a small part of consumption, limits importer pricing power. Strategies should prioritize supply chain stability and hedging against price fluctuations in global markets.

Check Detailed HS 2709 Breakdown

India Crude Petroleum (HS 2709) 2025 January Import: Market Concentration

Geographic Concentration and Dominant Role

India's Crude Petroleum HS Code 2709 Import for 2025 January shows heavy reliance on a few key suppliers, with Russia clearly dominant by value. Russia provided over one-third (34.08%) of the total import value but only 4.95% of the quantity, indicating it supplies higher-priced, premium-grade crude compared to others. This value-quantity gap points to Russia's oil being a higher-quality or more strategically priced commodity in India's energy import mix.

Partner Countries Clusters and Underlying Causes

The suppliers form two clear groups. The first is high-volume, lower-cost producers like Iraq and Kuwait, which together delivered 89.35% of the quantity but only 25.21% of the value, showing they supply larger volumes of cheaper crude. The second group comprises higher-value suppliers like Saudi Arabia and the UAE, which provide smaller quantities of more expensive oil, likely due to quality and transport costs. A third cluster includes smaller, niche partners like the US and Brazil, which offer diverse alternatives but in minimal volumes.

Forward Strategy and Supply Chain Implications

For buyers, this geographic spread requires a dual strategy: relying on Russia and the Gulf for core supply while using smaller partners for diversification and price negotiation. The recent policy change allowing ADNOC to re-export crude from India [TaxGuru] supports this by adding flexibility. Companies should secure long-term contracts with major suppliers to manage price volatility and explore new sources to mitigate geopolitical risks, especially given India's heavy import dependence.

Table: India Crude Petroleum (HS 2709) Top Partner Countries (Source: yTrade)

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India Crude Petroleum (HS 2709) 2025 January Import: Action Plan for Crude Petroleum Market Expansion

Strategic Supply Chain Overview

India Crude Petroleum Import 2025 January under HS Code 2709 is a bulk commodity trade with limited pricing power. Core price drivers are crude oil grade quality and global geopolitical risks, not product differentiation. Supply chain implications focus entirely on securing stable, high-volume flows from key partners to meet massive domestic demand, given minimal local production.

Action Plan: Data-Driven Steps for Crude Petroleum Market Execution

• Monitor Russian and Gulf supplier unit prices monthly to spot grade-based cost shifts and negotiate term contracts. This ensures stable margins amid volatile indices.
• Target frequent small buyers with flexible spot pricing to diversify beyond dominant bulk importers. This reduces reliance on a few major clients and captures niche demand.
• Use trade frequency data from key partners like Iraq to forecast inventory cycles and avoid overstock. This optimizes working capital and storage costs.
• Track policy shifts, like the DGFT re-export amendment, to identify new arbitrage or transshipment opportunities. This adds supply chain flexibility and revenue streams.
• Engage with occasional large buyers during supply gluts to offload excess volumes at competitive rates. This maximizes asset utilization and market share.

Take Action Now —— Explore India Crude Petroleum Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Crude Petroleum Import 2025 January?

India's crude petroleum imports remain high due to structural reliance on foreign oil, with stable month-over-month demand. Recent policy adjustments, like eased re-export rules, have added flexibility to trade flows.

Q2. Who are the main partner countries in this India Crude Petroleum Import 2025 January?

Russia dominates with 34.08% of import value, followed by Iraq and Kuwait, which supply 89.35% of the quantity but only 25.21% of the value.

Q3. Why does the unit price differ across India Crude Petroleum Import 2025 January partner countries?

Price differences stem from quality and strategic pricing, with Russia supplying higher-value crude while Iraq and Kuwait provide larger volumes of cheaper oil.

Q4. What should importers in India focus on when buying Crude Petroleum?

Importers should prioritize long-term contracts with major suppliers like Russia and Gulf nations while diversifying with niche partners to mitigate geopolitical risks.

Q5. What does this India Crude Petroleum import pattern mean for overseas suppliers?

Suppliers must balance high-volume contracts with dominant Indian buyers while exploring opportunities with smaller, frequent buyers for diversification.

Q6. How is Crude Petroleum typically used in this trade flow?

Crude petroleum is primarily imported for refining into fuels and petrochemicals, supporting India’s energy and industrial needs.