India Palm Oil HS1511 Import Data 2025 February Overview

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

In February 2025, India's palm oil imports under HS Code 1511 were dominated by Singapore, accounting for 56.38% of the value share but with lower unit prices, indicating a preference for crude palm oil due to bulk shipments and favorable duties. Indonesia and Malaysia formed a secondary cluster with higher unit prices, suggesting refined oil exports, while smaller producers had minimal impact. This analysis, based on cleanly processed Customs data from the yTrade database, highlights strategic sourcing opportunities for importers to optimize costs and navigate policy shifts, such as licensing requirements for refined palm oil.

India Palm Oil (HS 1511) 2025 February 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

As of February 2025, India’s import policy for HS Code 1511 has shifted to a "Restricted" status for refined palm oil and palmolein, requiring import licenses under the Foreign Trade Act [TaxTMI]. Customs duties on crude palm oil remain at 16.5% to encourage imports, while refined variants face higher tariffs [DFPD]. India’s reliance on palm oil imports, primarily from Malaysia and Indonesia, underscores its strategic importance for price stability and supply chain resilience. Market vigilance is essential amid evolving trade policies and regional restrictions, such as the ban on imports through Kerala ports.

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

Key Observations

In February 2025, India's Palm oil imports under HS Code 1511 surged to 1.37 billion USD in value, with a volume of 306.60 million kg, marking a sharp increase from the previous month.

Price and Volume Dynamics

The month-over-month value jump of over 80% from January's 757.04 million USD reflects typical seasonal stock replenishment cycles for edible oils, where importers often ramp up volumes ahead of peak demand periods like summer. This spike aligns with industry patterns of anticipatory buying to secure supplies before potential supply chain disruptions or policy shifts.

External Context and Outlook

The import surge was likely accelerated by India's recent policy adjustments, including a shift to restricted import status for refined palm oil under HS Code 1511 and a duty reduction on crude oils to 16.5% [TaxTMI], prompting importers to capitalize on favorable terms before tighter regulations took effect (TaxTMI). This policy-driven volatility underscores the need for close monitoring of trade regulations impacting India Palm oil HS Code 1511 Import 2025 February trends.

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

Product Specialization and Concentration

According to yTrade data, India's import of Palm oil under HS Code 1511 in February 2025 is dominated by crude palm oil, specifically HS Code 15111000, which accounts for over two-thirds of the import value and weight. This crude version, not chemically modified, has a unit price of 4.82 USD per kilogram, positioning it as the bulk commodity driver of the market. An extreme price anomaly is present in HS Code 15119010, with a unit price of 16.75 USD per kilogram, indicating a potential high-grade or specialty product that is isolated from the main analysis pool due to its outlier nature.

Value-Chain Structure and Grade Analysis

The remaining sub-codes for India Palm oil HS Code 1511 Import in 2025 February can be grouped into two categories: refined palm oil fractions with moderate unit prices around 2-4 USD per kilogram (e.g., HS Code 15119020 and 15119030) and other processed versions with slightly higher prices around 9 USD per kilogram (e.g., HS Code 15119090). This structure reflects a trade primarily in fungible bulk commodities, where products are differentiated mainly by refinement stage rather than brand or unique features, linking prices closely to global commodity indices.

Strategic Implication and Pricing Power

For market players, the high concentration on crude palm oil imports into India under HS Code 1511 suggests strong pricing power for suppliers of raw materials, driven by policy incentives. Recent changes, such as duty reductions on crude oils to 16.5% and import restrictions on refined versions, as per [taxtmi.com], encourage a strategic focus on sourcing crude palm oil to leverage cost advantages and navigate regulatory shifts effectively.

Check Detailed HS 1511 Breakdown

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

Geographic Concentration and Dominant Role

In February 2025, Singapore dominated India's palm oil imports under HS Code 1511 by value at 56.38%, but its value share is lower than its weight share, indicating lower unit price palm oil, likely crude grade due to bulk shipments.

Partner Countries Clusters and Underlying Causes

Indonesia and Malaysia form a cluster with higher unit prices, suggesting some refined palm oil exports, driven by their roles as major producers with close trade ties to India. Smaller countries like Papua New Guinea and Cambodia have minimal shares due to limited production capacity and distance.

Forward Strategy and Supply Chain Implications

Importers should focus on crude palm oil from Singapore and other sources to leverage lower duties and avoid restrictions on refined oil, as policy changes now require licenses for refined imports [taxtmi.com]. This shift reduces costs and simplifies supply chains for India Palm oil HS Code 1511 Import in 2025 February.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India Palm oil Import 2025 February under HS Code 1511 is a bulk commodity trade. Price is driven by product grade and government policy. Crude palm oil dominates with lower costs. Refined oils face higher duties and restrictions.

Supply chains focus on securing crude supply from key partners like Singapore. This ensures cost efficiency and compliance. Large, frequent buyers control most volume. This creates reliance on stable partnerships but also policy risk.

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

• Source primarily crude palm oil under HS Code 1511 from Singapore to benefit from lower import duties and avoid refined oil license requirements, reducing overall costs for India Palm oil Import 2025 February.
• Use trade data to identify and build long-term contracts with the dominant high-frequency, high-value buyer segment to secure consistent offtake and stabilize revenue streams.
• Monitor Indonesian and Malaysian shipments for unit price spikes to anticipate potential shifts towards refined product exports and adjust your own sourcing strategy accordingly to maintain competitiveness.
• Track regulatory updates from sources like TaxTMI in real-time to quickly adapt to any changes in India's import policy on palm oil, preventing costly compliance delays or disruptions.
• Analyze transaction frequency of smaller buyers to identify emerging local distributors for potential secondary sales channels, diversifying market reliance beyond the dominant players.

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 February?

India's palm oil imports surged by over 80% in value month-over-month due to seasonal stock replenishment and policy shifts, including duty reductions on crude palm oil and restrictions on refined imports.

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

Singapore dominates with 56.38% of import value, followed by Indonesia and Malaysia, which form a cluster with higher unit prices.

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

Price differences stem from product grades—Singapore supplies cheaper crude palm oil, while Indonesia and Malaysia export higher-priced refined variants.

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

Importers should prioritize sourcing crude palm oil from Singapore to leverage lower duties and avoid refined oil restrictions, while securing relationships with dominant high-volume buyers.

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

Suppliers must focus on bulk crude palm oil exports to India, as policy incentives favor raw materials, but monitor regulatory shifts that may disrupt trade.

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

Palm oil is primarily imported as a bulk commodity for edible oil production, with crude varieties dominating due to cost advantages and policy support.