India Palm Oil HS1511 Import Data 2025 May Overview

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

India's Palm oil imports under HS Code 1511 in May 2025 reveal a bulk commodity market dominated by Malaysia, which supplied 34% of imports, highlighting heavy geographic reliance. The consistent value-to-weight ratio suggests standardized, undifferentiated product grades priced around $3.20/kg. Buyer concentration remains high, increasing supply chain risks, especially with new DGFT approval requirements for restricted imports. This analysis, covering May 2025, is based on cleanly processed Customs data from the yTrade database.

India Palm Oil (HS 1511) 2025 May 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, biodiesel, and consumer goods industries, driven by its cost-effectiveness and versatility. Global demand remains stable due to its widespread use in cooking oils, snacks, and industrial applications.

Current Context and Strategic Position

As of November 2025, India has shifted the import policy for refined palm oil products (HS Code 1511 90) from "Free" to "Restricted," requiring prior DGFT approval [TaxTMI]. This policy change reflects India's strategic effort to regulate domestic supply chains and reduce dependency on imports. Given India's status as one of the world's largest palm oil importers, market participants must closely monitor 2025 May trade dynamics, including licensing requirements and tariff adjustments, to navigate this evolving landscape effectively.

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

Key Observations

In May 2025, India's palm oil imports under HS Code 1511 surged to 1.84 billion USD in value and 588.34 million kg in volume, representing the highest monthly performance in the year and a sharp rebound from April's lower figures.

Price and Volume Dynamics

The month-over-month increase from April to May saw import value jump by nearly 100% and volume rise by over 100%, driven by typical seasonal stock replenishment cycles ahead of peak demand periods. This spike aligns with common industry patterns where importers build inventory during pre-monsoon months to ensure supply stability. The sequential growth from a subdued April suggests robust underlying demand, though the absence of year-over-year data limits broader trend comparisons.

External Context and Outlook

The outlook for India palm oil imports is shaped by recent policy shifts, including the amendment to a restricted import regime for HS Code 1511 effective late 2025 [TaxTMI]. This change may lead to reduced import volumes and increased volatility as compliance with licensing requirements takes effect, potentially altering trade flows from key suppliers like Malaysia and Indonesia.

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

Product Specialization and Concentration

In May 2025, India's import of palm oil under HS Code 1511 is dominated by crude palm oil, specifically HS Code 15111000, which accounts for over three-quarters of the weight and value shares. According to yTrade data, this crude product has a unit price of 3.33 USD per kilogram, indicating its role as a bulk commodity. An extreme price anomaly is present in HS Code 15119090, with a unit price of 32.10 USD per kilogram, which is isolated from the main analysis due to its minimal quantity share.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into two categories: crude palm oil (15111000) and refined or further processed palm oils (15119020, 15119030, and 15119010), with unit prices ranging from 2.07 to 3.64 USD per kilogram. This structure shows a clear value-add progression from raw to processed forms, but the high volume and standardized pricing suggest that India's palm oil import under HS Code 1511 is primarily a fungible bulk commodity trade, often linked to global indices rather than differentiated goods.

Strategic Implication and Pricing Power

The concentration in crude palm oil gives suppliers strong pricing power for that segment, while the policy shift to restricted imports for refined products, as noted in [Complinity], may force importers to focus more on crude or navigate licensing hurdles. For India Palm oil HS Code 1511 Import 2025 May, this could lead to increased costs and strategic shifts towards securing reliable crude supplies.

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

Geographic Concentration and Dominant Role

In May 2025, India's import of Palm oil under HS Code 1511 was highly concentrated, with Malaysia serving as the dominant supplier, accounting for 34.01% of the import value and 33.15% of the weight. The close alignment between value and weight ratios suggests a consistent, standard commodity grade for Palm oil, with an estimated unit price around 3.20 USD per kilogram, indicating bulk, undifferentiated product characteristics typical of agricultural commodities.

Partner Countries Clusters and Underlying Causes

The supplier countries form three clear clusters: first, Malaysia, Indonesia, and Thailand, which together represent over 90% of imports by weight, driven by their roles as major global Palm oil producers with established trade routes and competitive pricing. Second, Papua New Guinea, Philippines, and Cambodia contribute smaller shares, likely due to geographic proximity and lower-cost sourcing options. Third, Nepal, UAE, Bangladesh, and Gabon have minimal presence, possibly acting as niche or re-export sources with insignificant impact on the overall supply chain.

Forward Strategy and Supply Chain Implications

For importers, the heavy reliance on Malaysia and Indonesia requires diversification to mitigate risks, especially with the recent policy shift to restricted imports under HS Code 1511, mandating DGFT approvals [Complinity]. Supply chains should prioritize securing licenses and exploring alternative sources like Thailand or Papua New Guinea to ensure uninterrupted access, while monitoring tariff changes that could affect cost structures for India Palm oil HS Code 1511 Import 2025 May.

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

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

Strategic Supply Chain Overview

India's Palm oil import market under HS Code 1511 is a bulk commodity trade dominated by crude palm oil (HS Code 15111000). Price is driven by global indices and supplier concentration in Malaysia and Indonesia. A recent policy shift to 'Restricted' imports mandates DGFT licenses for all shipments, increasing cost and delay risks. The buyer base is highly concentrated, with a few large, frequent importers controlling over 90% of volume. This creates supply chain vulnerability to regulatory changes or supplier disruptions. For India Palm oil Import 2025 May, the core implication is a need for supply security and license management to maintain processing hub operations.

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

• Use real-time trade data to monitor DGFT license approval rates and timelines for HS Code 1511. This prevents shipment delays and ensures compliance with India's new restricted import policy.
• Analyze supplier data to identify and qualify alternative sources in Thailand or Papua New Guinea. Diversification reduces over-reliance on Malaysia and mitigates geopolitical or supply chain risks.
• Track order frequency and volume of top buyers to anticipate demand cycles and negotiate long-term contracts. Securing recurring large-volume clients ensures stable revenue despite market concentration.
• Monitor unit price fluctuations across HS Code 1511 sub-categories to spot refining or processing opportunities. Shifting import mix towards higher-value products can improve margins under restricted import rules.
• Validate shipment records for HS Code 15119090 and other niche codes to identify premium market opportunities. This exploits anomalies for specialized segments without diverting focus from bulk trade.

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 May?

India's palm oil imports surged in May 2025, with value and volume doubling from April due to seasonal stock replenishment ahead of peak demand. The shift to a restricted import regime requiring licenses adds new compliance hurdles and potential volatility.

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

Malaysia dominates with 34% of import value, followed by Indonesia and Thailand, which collectively account for over 90% of imports by weight. Smaller suppliers like Papua New Guinea and Cambodia play marginal roles.

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

Price differences stem from product grade: crude palm oil (15111000) trades at ~3.33 USD/kg, while refined variants (e.g., 15119020) range from 2.07–3.64 USD/kg. An outlier sub-code (15119090) hits 32.10 USD/kg but is negligible in volume.

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

Importers must prioritize securing licenses under the new restricted policy and maintain relationships with dominant bulk buyers, who control 93% of trade. Diversifying sources beyond Malaysia/Indonesia (e.g., Thailand) mitigates supply risks.

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

Suppliers must adapt to India’s licensing requirements while leveraging the market’s reliance on bulk crude palm oil. High-volume buyers offer stable demand, but policy shifts may disrupt traditional trade flows.

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

India’s imports are primarily fungible bulk commodities, with crude palm oil (75% share) used for industrial food processing and refined grades for higher-end consumer goods. The trade is price-sensitive and tied to global indices.