India Palm Oil HS1511 Import Data 2025 March Overview

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

India’s Palm oil HS Code 1511 Import for 2025 March reveals a market dominated by high-grade refined products from Indonesia, which accounts for 55.13% of import value but just 32.98% of weight, signaling premium pricing. Buyer concentration remains a risk, while Singapore serves as a cost-effective crude oil transshipment hub with 43.33% of weight share. This analysis, covering March 2025, is based on cleanly processed Customs data from the yTrade database.

India Palm Oil (HS 1511) 2025 March Import Background

What is HS Code 1511?

HS Code 1511 refers to palm oil and its fractions, whether or not refined, but not chemically modified. It is a key commodity in global trade, primarily used in food processing, cosmetics, and biofuel industries. India's demand for palm oil remains high due to its cost-effectiveness and versatility in industrial applications.

Current Context and Strategic Position

India's import policy for HS Code 1511 has recently been amended, with the government extending the "Free" import status for refined and crude palm oil under this category [TaxTMI]. This policy shift reflects India's reliance on imports to meet domestic demand, particularly from major suppliers like Malaysia and Indonesia. Given the strategic importance of palm oil imports to India's food security and industrial sectors, market participants must closely monitor policy updates and global price trends in March 2025.

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

Key Observations

In March 2025, India's Palm oil imports under HS Code 1511 reached a value of 1.24 billion USD with a volume of 393.79 million kg, maintaining strong import activity despite a slight dip from the previous month.

Price and Volume Dynamics

Month-over-month, import value fell by 9.5% from February's 1.37 billion USD, while volume rose 28.4% to 393.79 million kg, indicating a sharp drop in average prices. This divergence is unusual for Palm oil, which typically sees stable demand from food and industrial sectors, suggesting possible inventory buildup or market oversupply ahead of seasonal consumption peaks.

External Context and Outlook

The extended 'Free' import policy for HS Code 1511, as highlighted in [Complinity], likely supported higher volume inflows by reducing trade barriers. However, price pressures may stem from global supply increases or competitive pricing, reinforcing the need to watch policy effects on India Palm oil HS Code 1511 Import 2025 March performance.

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

Product Specialization and Concentration

According to yTrade data, India's Palm oil imports under HS Code 1511 in March 2025 are dominated by crude palm oil, specifically HS Code 15111000 for "Vegetable oils; palm oil and its fractions, crude, not chemically modified". This sub-code holds a 78% value share and 77% weight share, with a unit price of 3.21 USD per kilogram, which is higher than some refined variants, indicating a specialization in bulk crude imports.

Value-Chain Structure and Grade Analysis

The non-dominant imports are all refined palm oils under sub-codes like 15119020, 15119030, 15119010, and 15119090, with unit prices ranging from 2.14 to 3.73 USD per kilogram. This range points to different quality grades or refinement levels, but the overall structure aligns with fungible bulk commodities, where prices are closely tied to global indices and slight variations reflect standard market grading rather than high differentiation.

Strategic Implication and Pricing Power

The heavy reliance on crude palm oil imports gives suppliers significant pricing power due to high volume demand, while refined oil imports face influence from policy shifts, such as the free import policy for refined oils under HS Code 1511 90 as per [Complinity]. Importers should prioritize crude oil for cost efficiency in bulk sourcing or refined oils for specific quality needs, adapting to policy-driven market changes.

Check Detailed HS 1511 Breakdown

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

Geographic Concentration and Dominant Role

India's Palm oil HS Code 1511 Import for 2025 March is heavily concentrated, with Indonesia supplying over half the total value (55.13%) but only a third of the weight (32.98%). This large gap between value and weight share means India pays more per kilogram for Indonesian palm oil, pointing to a focus on higher-grade, refined products from this key supplier. Malaysia is the second major source, providing over a quarter of the import value (26.23%).

Partner Countries Clusters and Underlying Causes

The suppliers form three clear groups. The first is Indonesia and Malaysia, which are the dominant partners due to their large palm oil production and established trade routes to India. The second cluster includes Singapore, which ships a huge volume (43.33% of weight) but at a much lower value share (15.78%), indicating it acts as a major transshipment hub for cheaper, crude palm oil. The third group consists of smaller regional players like Cambodia and Nepal, whose minor shares are likely due to preferential trade agreements that allow for limited, niche shipments.

Forward Strategy and Supply Chain Implications

Buyers should maintain strong ties with Indonesian and Malaysian refiners for premium supply but also use Singapore for cost-effective crude oil. The sustained "Free" import policy [DGFT via Complinity] means this geographic spread is stable, so the main task is to watch for any changes to this policy that could alter sourcing costs or patterns.

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

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

Strategic Supply Chain Overview

India Palm oil Import 2025 March under HS Code 1511 is a high-volume commodity trade. Price is driven by global palm oil index fluctuations and product grade differences. Crude oil (HS Code 15111000) dominates with 78% value share, making bulk pricing from Indonesia and Malaysia critical. Supply chain implications focus on supply security. India depends on Southeast Asian refiners for quality and Singapore for cost-effective crude transshipment. The free import policy ensures stability but creates reliance on few origins and buyer groups.

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

• Monitor Indonesian and Malaysian refinery output weekly using trade data. This prevents cost spikes from supply shortages.
• Track Singapore shipment volumes and prices for crude palm oil. Use this to secure lower-cost bulk contracts when global indexes dip.
• Analyze high-frequency buyer purchase cycles in HS Code 1511 data. Align inventory with their demand patterns to avoid overstock or stockouts.
• Screen smaller regional suppliers like Cambodia under trade agreements. Diversify sources to reduce dependency on dominant origins.
• Model policy change scenarios using historical trade data. Prepare alternative sourcing routes if India’s free import policy shifts.

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 March?

India's palm oil imports in March 2025 saw a 9.5% drop in value but a 28.4% rise in volume, indicating lower average prices. This trend likely reflects global oversupply or inventory buildup ahead of seasonal demand, supported by India's free import policy for crude and refined palm oil.

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

Indonesia dominates with 55.13% of import value, followed by Malaysia (26.23%). Singapore is a key transshipment hub, contributing 43.33% of weight but only 15.78% of value due to cheaper crude oil shipments.

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

Price differences stem from product grades: Indonesia supplies higher-priced refined oils, while Singapore handles bulk crude palm oil (HS Code 15111000), which is cheaper at 3.21 USD/kg compared to refined variants (2.14–3.73 USD/kg).

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

Prioritize bulk crude palm oil (HS Code 15111000) for cost efficiency, given its 78% value share. Diversify suppliers to mitigate reliance on Indonesia and leverage Singapore for lower-cost crude shipments, while monitoring policy shifts affecting refined oil imports.

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

Suppliers in Indonesia and Malaysia benefit from stable demand for premium refined oils, while Singapore’s role as a transshipment hub offers volume-driven opportunities. Smaller regional players like Cambodia and Nepal face niche demand due to limited trade agreements.

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

Palm oil is primarily imported as crude bulk (HS Code 15111000) for food manufacturing and industrial use, with refined variants catering to specific quality needs in consumer goods and processed foods.