India Palm Oil HS1511 Import Data 2025 July Overview

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

India's Palm oil imports under HS Code 1511 in July 2025 reveal heavy reliance on MALAYSIA, supplying 81.34% of import value and 93.74% of weight, signaling bulk commodity-grade dominance. The market remains concentrated, with MALAYSIA and INDONESIA handling over 95% of volume, exposing supply chain risks amid India's recent 'Restricted' import policy shift. This analysis, covering July 2025, is based on cleanly processed Customs data from the yTrade database.

India Palm Oil (HS 1511) 2025 July 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, cosmetics, and biofuel industries, driven by its cost-effectiveness and versatility. Global demand remains stable due to its widespread use in packaged foods and industrial applications.

Current Context and Strategic Position

In July 2025, India’s palm oil imports under HS Code 1511 face heightened scrutiny following a November 2025 policy shift that reclassified refined palm oil products from ‘Free’ to ‘Restricted’ [TaxTMI]. This aligns with India’s broader strategy to balance domestic production and reduce reliance on volatile global markets. As the world’s largest importer of palm oil, India’s trade policies directly impact global supply chains, necessitating close monitoring of regulatory changes and tariff adjustments.

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

Key Observations

India's import of Palm oil under HS Code 1511 in July 2025 surged to $9.84 billion in value and 7.97 billion kg in volume, marking an unprecedented monthly spike that dominated the 2025 trade landscape.

Price and Volume Dynamics

The value of imports jumped approximately 349% month-over-month from June 2025, while volume increased proportionally. This sharp rise follows a gradual upward trend from May, when imports stood at $1.84 billion. The pattern aligns with typical industry responses to policy incentives, as traders likely accelerated shipments to leverage reduced duties announced earlier, reflecting palm oil's sensitivity to tariff changes and stock cycle adjustments.

External Context and Outlook

The import surge in July 2025 is primarily driven by the basic customs duty reduction on crude palm oil implemented by the Indian government in May 2025 [DFPD]. This policy easing reduced import costs, stimulating higher volumes. Moving forward, import levels may stabilize or adjust based on further policy reviews and global price fluctuations, influencing India's palm oil supply dynamics.

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

Product Specialization and Concentration

In July 2025, India's Palm oil imports under HS Code 1511 were overwhelmingly concentrated in crude palm oil. According to yTrade data, the sub-code for crude palm oil (15111000) made up over 96% of the import quantity and nearly 99% of the value, with a unit price of 1.23 USD per kilogram. This low price point, compared to other sub-codes, highlights a strong specialization in bulk, unrefined product for the India Palm oil HS Code 1511 Import 2025 July period.

Value-Chain Structure and Grade Analysis

The other sub-codes fall into two main groups based on refinement level: semi-refined oils with unit prices around 3.22 USD per kilogram (e.g., 15119020) and other processed variants with prices from 1.95 to 3.08 USD per kilogram (e.g., 15119030, 15119010). This structure indicates a trade primarily in fungible bulk commodities, where crude oil dominates, and refined products serve smaller, specific market segments without significant differentiation.

Strategic Implication and Pricing Power

Importers face limited pricing power due to the commodity nature of crude palm oil, requiring a focus on volume efficiency and cost management. For refined oils, opportunities exist in niche demands, but the market remains driven by bulk transactions. Strategic efforts should prioritize supply chain optimization for crude imports to capitalize on scale.

Check Detailed HS 1511 Breakdown

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

Geographic Concentration and Dominant Role

In July 2025, India's import of Palm oil under HS Code 1511 shows strong geographic concentration, with MALAYSIA as the dominant supplier, accounting for 81.34% of the import value and 93.74% of the weight. The lower value ratio compared to weight ratio suggests MALAYSIA primarily provides bulk, commodity-grade palm oil at a competitive price, highlighting its role as a key source for India's palm oil needs in this period.

Partner Countries Clusters and Underlying Causes

The partner countries form two main clusters: first, MALAYSIA and INDONESIA together handle over 95% of the weight, driven by their proximity and status as top global palm oil producers, ensuring cost-effective supply. Second, smaller players like THAILAND and PAPUA NEW GUINEA contribute minor shares, possibly due to niche product offerings or regional trade agreements, while others like NEPAL and BANGLADESH have minimal impact, likely serving as occasional or re-export sources.

Forward Strategy and Supply Chain Implications

For market players, the heavy reliance on MALAYSIA and INDONESIA underscores the need to diversify sources to mitigate supply risks, especially with recent import policy shifts to 'Restricted' status as noted in [TaxTMI]. Companies should focus on building relationships with secondary suppliers and stay updated on regulatory changes to ensure stable palm oil imports into India under HS Code 1511.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India Palm oil Import 2025 July under HS Code 1511 is a bulk commodity trade. Price is driven by crude oil grade differentials and geopolitical shifts in key supply nations. Supply chain implications center on securing high-volume, low-cost crude flows from Malaysia and Indonesia while managing policy risks like recent import restrictions.

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

• Use HS sub-code data to track crude versus refined price gaps. This identifies premium niches within the dominant bulk trade.
• Analyze buyer frequency patterns to time contract renewals with high-volume importers. It prevents volume loss to competitors.
• Monitor real-time supplier shifts from Indonesia and Malaysia. It enables rapid diversification if supply or policy risks emerge.
• Track regulatory updates for HS Code 1511 changes. This avoids costly compliance delays or shipment holds.

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 July?

The surge in India's palm oil imports in July 2025 is primarily due to a customs duty reduction on crude palm oil, leading to a 349% month-over-month value increase. Bulk commodity-grade imports dominated, reflecting traders' response to cost incentives.

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

Malaysia supplied 81.34% of the import value, followed by Indonesia, with both countries handling over 95% of the volume. Smaller contributors like Thailand and Papua New Guinea played minor roles.

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

Price differences stem from product grades: crude palm oil (96% of imports) averaged $1.23/kg, while semi-refined variants (e.g., 15119020) cost ~$3.22/kg due to higher processing levels.

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

Importers must prioritize bulk contracts with high-volume buyers (98.46% market share) and optimize supply chains for crude palm oil, which dominates trade. Diversifying sources beyond Malaysia and Indonesia can mitigate supply risks.

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

Suppliers must cater to India's bulk commodity demand, with Malaysia and Indonesia favored for cost efficiency. Niche refined oil producers can target smaller, specialized buyers but face limited market share.

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

India primarily imports crude palm oil (96% of volume) for bulk industrial use, while refined variants serve niche segments like food processing or specialty consumer goods.