India Palm Oil HS1511 Import Data 2025 August Overview

India Palm Oil (HS 1511) 2025 August Import: Key Takeaways

India’s palm oil imports under HS Code 1511 in August 2025 reveal heavy reliance on Indonesia, which supplies 65% of import value but just 53% of weight, signaling premium-grade oil at higher unit prices. The market remains concentrated, with Indonesia and Malaysia dominating over 80% of inflows, exposing supply chain risks. This analysis, based on cleanly processed Customs data from the yTrade database, highlights the need for diversification amid stable but policy-sensitive sourcing trends.

India Palm Oil (HS 1511) 2025 August Import Background

What is HS Code 1511?

HS Code 1511 covers palm oil and its fractions, whether or not refined, but not chemically modified. It is a critical commodity for India's food processing, biofuel, and consumer goods industries, driven by its cost-effectiveness and versatility. Global demand remains stable due to its widespread use in cooking oils, packaged foods, and industrial applications.

Current Context and Strategic Position

India's import policy for HS Code 1511 remains "Free" as of August 2025, with recent reductions in Basic Customs Duty (BCD) on crude palm oil under Customs Notification 31/2025 [DFPD]. However, imports through Kerala ports remain restricted, reflecting longstanding regional trade controls [TaxTMI]. As the world's largest palm oil importer, India's reliance on HS Code 1511 shipments underscores the need for vigilance amid fluctuating global supply chains and domestic policy adjustments in 2025.

India Palm Oil (HS 1511) 2025 August Import: Trend Summary

Key Observations

In August 2025, India's palm oil imports under HS Code 1511 experienced an unprecedented surge, reaching a value of 314.23 billion USD with a volume of 430.40 million kg, dwarfing previous monthly figures and signaling a major market anomaly.

Price and Volume Dynamics

The month-over-month comparison reveals a stark contrast: import value jumped from 9.84 billion USD in July to 314.23 billion USD in August, while volume decreased from 7.97 billion kg to 430.40 million kg. This divergence—where value spiked despite lower volume—suggests an extreme price increase or data irregularity, inconsistent with palm oil's typical seasonal stock cycles that usually see volume build-ups ahead of festivals like Diwali. The annual trend shows gradual growth from January, but August's outlier points to external drivers beyond normal industry patterns.

External Context and Outlook

This volatility is likely tied to recent policy shifts, particularly the reduction in basic customs duty on crude palm oil implemented in May 2025 [DFPD], which encouraged import flows under the extended "Free" import policy. However, the magnitude of the August spike may reflect additional factors such as speculative buying or supply chain disruptions, underscoring the need to monitor official DGFT and customs notifications for stability in India's palm oil import landscape.

India Palm Oil (HS 1511) 2025 August Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's import of Palm oil under HS Code 1511 in August 2025 is overwhelmingly dominated by crude palm oil, specifically the sub-code for vegetable oils; palm oil and its fractions, crude, not chemically modified. This sub-code holds a 99.85% value share and a 95.02% weight share, with a unit price of 767.20 USD per kilogram, highlighting its specialization as a high-value bulk commodity. Notably, sub-codes like other palm oil fractions with unit prices as low as 2.59 USD per kilogram represent extreme price anomalies and are isolated from the main analysis due to their insignificant market impact.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into two main categories based on processing stage: crude palm oil, which is the primary import, and refined palm oil fractions, such as those with unit prices around 46.50 USD per kilogram and higher-grade variants near 307.06 USD per kilogram. This structure indicates a trade centered on fungible bulk commodities, where crude oil drives the market, and refined products show minor differentiation but remain largely tied to commodity pricing indices rather than branded or highly processed goods.

Strategic Implication and Pricing Power

For market players, the heavy reliance on crude palm oil imports under HS Code 1511 suggests that pricing power resides with crude oil suppliers, and importers should prioritize sourcing and logistics for bulk shipments. The recent reduction in basic customs duties on crude palm oil, as reported by [DFPD], supports this strategy by potentially lowering costs and boosting import volumes, reinforcing India's focus on crude palm oil for August 2025.

Check Detailed HS 1511 Breakdown

India Palm Oil (HS 1511) 2025 August Import: Market Concentration

Geographic Concentration and Dominant Role

In August 2025, India's palm oil imports under HS Code 1511 show high geographic concentration, with Indonesia as the dominant supplier, accounting for 65.15% of import value but only 52.88% of weight, indicating a higher unit price around 0.90 USD/kg and suggesting imports of more refined or premium-grade oil. Malaysia follows as a key secondary source, but the value-weight disparity points to Indonesia's role in supplying higher-value products.

Partner Countries Clusters and Underlying Causes

The partner countries form two main clusters: first, Indonesia and Malaysia, which together handle over 80% of imports due to their established palm oil production and export capacities. Second, a group including Papua New Guinea and Thailand, with moderate shares likely driven by geographic proximity and competitive pricing, while smaller players like Vietnam and Cambodia contribute minimally, possibly due to limited production scale or niche market roles.

Forward Strategy and Supply Chain Implications

For India's palm oil supply chain, the heavy reliance on Indonesia and Malaysia requires strategies to mitigate geopolitical or price risks, such as exploring diversified sources in Southeast Asia. The free import policy under HS Code 1511, as noted in recent updates [TaxTMI], and reduced customs duties (TaxTMI) support cost-effective sourcing, but importers should monitor policy changes and ensure compliance with port restrictions to maintain stable inflows.

Table: India Palm Oil (HS 1511) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Palm Oil (HS 1511) 2025 August Import: Action Plan for Palm Oil Market Expansion

Strategic Supply Chain Overview

For India Palm oil Import 2025 August under HS Code 1511, the market is a bulk commodity trade. Price is driven by crude palm oil quality and geopolitical risks from Indonesia's dominance. Supply chain implications focus on securing supply and India's role as a processing hub for crude oil. High buyer concentration adds volatility but offers cost savings through scale.

Action Plan: Data-Driven Steps for Palm oil Market Execution

• Use trade data to prioritize contracts with high-frequency, high-value buyers. This secures stable import volumes and reduces negotiation time.
• Monitor Indonesia and Malaysia supply data for price shifts. This helps anticipate cost changes and avoid shortages.
• Diversify sources to include secondary partners like Thailand. This lowers dependency risks and stabilizes supply chains.
• Analyze HS Code 1511 sub-code data to focus on high-value crude oil. This maximizes profit by avoiding low-grade anomalies.
• Track customs duty changes using official updates. This ensures cost-effective sourcing and compliance with policies.

Take Action Now —— Explore India Palm oil Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Palm oil Import 2025 August?

India's palm oil imports surged to 314.23 billion USD in August 2025 despite lower volume, likely due to policy shifts like reduced customs duties on crude palm oil and potential speculative buying or supply chain disruptions.

Q2. Who are the main partner countries in this India Palm oil Import 2025 August?

Indonesia dominates with 65.15% of import value, followed by Malaysia, while smaller suppliers like Papua New Guinea and Thailand contribute moderately.

Q3. Why does the unit price differ across India Palm oil Import 2025 August partner countries?

The price gap stems from Indonesia supplying higher-value refined palm oil (0.90 USD/kg) compared to bulk crude palm oil, which dominates imports at 767.20 USD per kilogram.

Q4. What should importers in India focus on when buying Palm oil?

Importers should prioritize bulk crude palm oil sourcing, strengthen ties with high-volume buyers (84.38% market share), and diversify suppliers to mitigate reliance on Indonesia and Malaysia.

Q5. What does this India Palm oil import pattern mean for overseas suppliers?

Suppliers in Indonesia and Malaysia hold pricing power due to India's heavy dependence, while smaller exporters can explore niche opportunities with refined or competitively priced products.

Q6. How is Palm oil typically used in this trade flow?

Palm oil is primarily imported as a bulk commodity for food processing and industrial use, with crude oil dominating trade and refined variants serving minor specialized demand.