India Palm Oil HS1511 Import Data 2025 January Overview

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

India's January 2025 Palm oil imports under HS Code 1511 reveal a market heavily reliant on Malaysia, which supplies 88.39% of volume but at lower unit values, indicating crude-grade dominance. While Indonesia offers higher-value refined oil, its limited share highlights an opportunity for diversification. This analysis, based on cleanly processed Customs data from the yTrade database, underscores the need for importers to balance cost-efficiency with quality by strengthening ties with Malaysia while exploring Indonesian and emerging regional suppliers.

India Palm Oil (HS 1511) 2025 January 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

In January 2025, India maintained a "Free" import policy for refined and crude palm oil under HS Code 1511, allowing unrestricted imports without licensing requirements [Complinity]. The government reduced Basic Customs Duty (BCD) on crude palm oil in mid-2025, further easing imports [DFPD]. India’s reliance on palm oil imports underscores its strategic importance for price stability and supply security, necessitating close monitoring of tariff adjustments and global market trends.

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

Key Observations

India's Palm oil imports under HS Code 1511 opened 2025 strongly, with January registering a value of $757.04 million. This reflects substantial inbound trade activity, though volume data (kg) was not reported for the month.

Price and Volume Dynamics

The absence of prior-month or year-earlier data limits direct quarterly or annual comparisons. However, the high import value aligns with typical post-harvest stock rebuilding cycles in early calendar years, as processors and refiners secure supplies ahead of summer demand peaks. The lack of volume figures suggests possible higher unit costs or concentrated high-value refined product shipments.

External Context and Outlook

The strong import performance was directly supported by India’s continued liberal import policy. The Directorate General of Foreign Trade (DGFT) had extended the ‘Free’ import policy for refined palm oil under HS codes like 15119010 [Complinity], while the Basic Customs Duty on crude palm oil was reduced effective May 2025 (DFPD). These measures sustained favorable import conditions, encouraging high-volume purchasing. With tariff values for edible oils also updated in late November 2025 (TaxTMI), stable policy settings are likely to support consistent import flows in the near term.

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

Product Specialization and Concentration

According to yTrade data, India's Palm oil Import under HS Code 1511 in January 2025 is heavily concentrated in crude palm oil (HS 15111000), which represents 89% of the import volume and 78% of the value. The lower value share compared to volume indicates a bulk commodity with competitive pricing. A minor anomaly is noted in sub-code 15119010, which has a very low value contribution relative to its quantity, suggesting isolated pricing irregularities that are excluded from further analysis.

Value-Chain Structure and Grade Analysis

The remaining sub-codes under HS 1511 for India's import are categorized into two groups: refined palm oil with higher value (HS 15119020) and other refined variants with lower value (HS 15119030 and 15119090). This structure shows a transition from fungible bulk crude oil to more differentiated refined products, where HS 15119020 commands a premium due to further processing, while the others remain commodity-like with lower price points.

Strategic Implication and Pricing Power

For market players, the dominance of crude palm oil under HS 15111000 means limited pricing power due to its commodity nature and high competition. The free import policy and duty reductions, as noted in Complinity and (Complinity), likely increase supply pressure, favoring buyers. Strategic focus should be on cost efficiency for crude imports and value addition for refined segments to capture margins.

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

Geographic Concentration and Dominant Role

In January 2025, India's import of Palm oil under HS Code 1511 was heavily concentrated, with Malaysia dominating as the primary source. Malaysia accounted for 50.27% of the import value but 88.39% of the quantity, indicating it supplies lower-unit-value palm oil, likely crude grades due to the value share being lower than quantity share.

Partner Countries Clusters and Underlying Causes

The partner countries form two main clusters. First, Southeast Asian producers like Malaysia and Indonesia show a split: Malaysia provides high volume at lower value (crude oil), while Indonesia offers high value despite low quantity (refined oil). Second, other regional and African sources such as Papua New Guinea, Philippines, and Cambodia have minimal shares, driven by smaller production scales and distance, making them secondary suppliers.

Forward Strategy and Supply Chain Implications

Importers should maintain strong ties with Malaysia for cost-effective crude palm oil but diversify into Indonesian refined oil to balance quality and risk. The free import policy and reduced duties [Complinity] support easier sourcing, so firms can use this to secure stable supply chains while exploring new partners in emerging regions for resilience.

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

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

Strategic Supply Chain Overview

India's Palm oil Import market under HS Code 1511 in January 2025 is a bulk commodity trade. Price is driven by crude palm oil grades and geopolitical shifts in Southeast Asia. Supply chains depend heavily on Malaysian crude oil for cost, with Indonesian refined oil for quality. The free import policy supports volume but increases competition.

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

• Target the dominant high-volume buyer cluster with competitive crude oil offers. This secures stable, large-volume sales in a concentrated market.
• Monitor HS sub-code 15119020 shipments for refined oil premium opportunities. This captures higher margins in a commodity-dominated trade.
• Diversify sourcing to include Indonesian partners for refined oil. This balances supply risk and quality needs beyond Malaysian crude.
• Track DGFT policy updates for HS Code 1511 changes. This avoids customs delays and capitalizes on duty reductions.
• Analyze small frequent buyers for local distribution partnerships. This builds secondary revenue streams outside major players.

Risk Mitigation and Forward Strategy

Over-reliance on Malaysian crude and a few buyers creates vulnerability. Diversify into Indonesian refined oil and emerging suppliers like Papua New Guinea. Use the free import policy to secure alternative supply chains. Add value through domestic refining to capture margins and reduce exposure to global crude price swings.

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 January?

India's palm oil imports in January 2025 were strong, reaching $757.04 million, supported by a liberal import policy and reduced customs duties. The high import value aligns with post-harvest stock rebuilding cycles ahead of summer demand peaks.

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

Malaysia dominates as the primary supplier, accounting for 50.27% of import value and 88.39% of quantity. Indonesia is another key partner, contributing high-value refined palm oil despite lower volume shares.

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

The price difference stems from product grades—Malaysia supplies cheaper crude palm oil (HS 15111000), while Indonesia provides higher-value refined variants (HS 15119020). Crude oil’s bulk commodity nature keeps prices competitive.

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

Importers should prioritize cost-efficient crude palm oil from Malaysia while diversifying into refined grades from Indonesia for premium margins. Maintaining relationships with dominant high-volume buyers is critical for stable trade.

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

Suppliers in Malaysia benefit from steady bulk demand, while Indonesian refiners can leverage premium pricing. Smaller exporters face limited opportunities due to India’s heavy reliance on key Southeast Asian sources.

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

Palm oil is primarily used in food processing, cooking oil, and industrial applications. Crude palm oil serves as a bulk commodity, while refined variants cater to higher-end consumer and manufacturing needs.