India Palm Oil Import Market -- HS 1511 Trade Data & Price Trend (Q1 2025)

India Palm Oil Import (HS 1511) Key Takeaways

India's palm oil imports under HS Code 1511 in Q1 2025 reveal a bulk commodity market dominated by crude palm oil (73.9% of value), with volatile trade spiking 80% in February before moderating in March. Supplier concentration is extreme—97% of imports flow through a single group of traders, creating efficiency but also supply chain risk. Geographically, Southeast Asia accounts for 95% of imports, with Indonesia supplying premium grades and Malaysia driving bulk volumes. This analysis, covering Q1 2025, is based on cleanly processed customs data from the yTrade database.

India Palm Oil Import (HS 1511) Background

What is HS Code 1511?

HS Code 1511 covers palm oil and its fractions, whether or not refined, but not chemically modified. This includes crude palm oil, refined palm oil, and palmolein, which are widely used in food processing, cosmetics, and biofuel industries. Global demand remains stable due to its cost-effectiveness and versatility in industrial applications.

Current Context and Strategic Position

India's Directorate General of Foreign Trade (DGFT) has maintained a free import policy for refined palm oil under HS 1511, with no new restrictions announced in Q1 2025 [GPC Gateway]. This aligns with India's status as the world's top vegetable oil importer, relying heavily on palm oil to meet domestic demand. India's palm oil import trends under HS Code 1511 trade data show sustained activity, driven by food and industrial needs. Given the commodity's sensitivity to global price fluctuations and policy shifts, market vigilance remains critical for stakeholders.

India Palm Oil Import (HS 1511) Price Trend

Key Observations

India's palm oil imports under HS code 1511 experienced notable volatility in Q1 2025, with import values swinging from $757 million in January to a peak of $1.37 billion in February, before moderating to $1.24 billion in March. This India Palm oil Import trend highlights a quarter marked by significant month-to-month shifts in trade activity.

Price and Volume Dynamics

The sequential surge from January to February, representing an increase of over 80% in value, aligns with typical post-harvest inventory builds and pre-holiday demand spikes common in India's edible oil sector, such as stockpiling for festivals like Holi in March. However, the subsequent decline in March suggests a market correction or inventory drawdown after the seasonal peak, indicating that importers may have adjusted orders in response to price sensitivity or supply chain timing.

External Context and Outlook

India's import policy for palm oil remained stable throughout Q1 2025, with no new restrictions or changes reported by the Directorate General of Foreign Trade (DGFT), as detailed in recent notifications [GPC Gateway]. The continuation of free import policies under HS code 1511, with duties applied as before, provided a consistent regulatory backdrop [S&P Global]. Moving forward, the hs code 1511 value trend will likely be driven more by global price fluctuations and domestic demand cycles than policy adjustments, maintaining a focus on market-driven dynamics.

India Palm Oil Import (HS 1511) HS Code Breakdown

Product Specialization and Concentration

India's import of palm oil under HS Code 1511 in Q1 2025 is overwhelmingly dominated by crude palm oil. According to yTrade data, crude palm oil (HS Code 15111000) accounts for 73.9% of the total import value and 84.4% of the quantity, establishing it as the market's core commodity. This high-volume, lower unit price (USD 5.03 per kg) trade defines the market's bulk commodity nature.

Value-Chain Structure and Grade Analysis

The remaining imports are split into refined palm oil products, which trade at different price points. The largest refined category (HS Code 15119020) holds a 23.6% value share with a unit price of USD 4.37 per kg, while two smaller refined categories (15119030 and 15119090) trade at lower and higher prices respectively. This structure confirms a classic bulk commodity market where products are largely fungible and priced based on refining grade rather than brand differentiation.

Strategic Implication and Pricing Power

For importers, this market offers little pricing power due to its commodity nature, making cost-efficient sourcing critical. India's import policy for these products has remained stable, with free import status extended for key refined codes [TaxGuru], ensuring consistent supply access. Analyzing HS Code 1511 trade data shows that strategic focus should remain on securing competitive crude contracts while monitoring refining margins for value-added opportunities.

Check Detailed HS Code 1511 Breakdown

India Palm Oil Import (HS 1511) Origin Countries

Geographic Concentration and Dominant Role

Indonesia is the top palm oil supplier to India in Q1 2025, accounting for 37.72% of the import value. However, its share by weight (23.31%) is significantly lower than its value share. This gap indicates Indonesia primarily supplies higher-grade or more processed palm oil products under HS Code 1511, which command a premium price. Malaysia and Singapore are also major players, with Malaysia showing a high volume share (43.74% by quantity) relative to its value (28.45%), suggesting it is a key source for bulk or raw palm oil shipments.

Origin Countries Clusters and Underlying Causes

The supplier base splits into three clear clusters. The first is a high-value cluster of Indonesia and Singapore, where value shares outpace weight shares, pointing to trade in refined or specialty palm oils. The second is a volume cluster led by Malaysia, which dominates quantity shares, indicating its role as a bulk raw material source. The third is a fragmented, transactional cluster including Papua New Guinea, Cambodia, and Nepal. These countries have very low shipment volumes but relatively high transaction frequencies, typical of smaller, niche suppliers or occasional spot market purchases.

Forward Strategy and Supply Chain Implications

India's palm oil imports are heavily concentrated in Southeast Asia, with over 95% of value coming from just three countries. This creates significant supply chain vulnerability to regional disruptions, weather events, or trade policy changes in Indonesia and Malaysia. India's import policy for HS Code 1511 remains stable with free import status, as confirmed by recent extensions [TaxGuru]. However, the lack of diversification highlights a strategic need to develop alternative sources or increase domestic production capacity to mitigate concentration risks in this essential commodity market.

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

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India Palm Oil (HS 1511) Suppliers Analysis

Supplier Concentration and Dominance

According to yTrade data, the India palm oil import supplier market in Q1 2025 is highly concentrated. One group of suppliers handles almost all the trade, accounting for 97% of the value and 96% of the quantity. This group also makes up over three-quarters of all shipments. The typical trade involves large, frequent deliveries of bulk palm oil.

Strategic Supplier Clusters and Trade Role

The remaining suppliers are much smaller. A few companies occasionally ship high-value cargo, but they contribute only 2% to the total value. Many other firms ship often but in small amounts, together adding less than 1% to the import value. The profile of HS code 1511 suppliers, including firms like IFFCO SINGAPORE PTE LTD, points to an intermediated market. These are large trading companies, not direct producers, indicating that imports are agent-driven.

Sourcing Strategy and Vulnerability

India’s palm oil sourcing relies heavily on a few major traders. This creates efficiency but also concentration risk. Any disruption among these key players could affect supply. The current free import policy, as noted in DGFT notifications, supports stable access. Buyers should monitor these dominant suppliers closely but do not face urgent diversification pressure under the present trade rules.

Table: India Palm Oil (HS 1511) Top Suppliers List (Source: yTrade)

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Action Plan for Palm Oil Market Operation and Expansion

Strategic Supply Chain Overview

India's Palm oil Import market is a classic bulk commodity trade. Price is primarily driven by crude palm oil grade and refining margins. HS code 1511 trade data shows Indonesia supplies higher-value refined products, while Malaysia dominates bulk volume. A secondary price driver is geopolitical risk in Southeast Asia, where over 95% of supply originates. This creates significant concentration risk for the Palm oil supply chain. Any regional disruption, policy change, or weather event in Indonesia or Malaysia could immediately impact cost and availability. The market's reliance on a few large trading companies, rather than direct producers, further concentrates this risk into a small number of key intermediaries.

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

• Continuously monitor the top five suppliers' shipment volumes and frequencies using hs code 1511 trade data. This early warning system helps anticipate supply disruptions from dominant traders, allowing you to secure alternative cargoes before shortages occur.
• Analyze monthly import data to track the value-to-weight ratio of shipments from Indonesia and Singapore. A sustained drop in this ratio signals a market shift toward cheaper grades, providing a critical signal to renegotiate contracts or adjust product formulations for cost savings.
• Develop a contingency plan that identifies and pre-qualifies smaller suppliers from alternative origins like Papua New Guinea. This diversifies your Palm oil supply chain away from Southeast Asian concentration, mitigating the risk of a single-point failure in your sourcing.
• Use buyer frequency data to model inventory cycles and align your purchasing with typical shipment patterns. This prevents costly inventory overstock or understock, optimizing working capital and ensuring consistent production line operation.

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 Q1?

India's palm oil imports saw significant volatility, with an 80% value surge from January to February 2025 due to post-harvest inventory builds and pre-festival demand, followed by a March correction as importers adjusted orders.

Q2. Who are the main origin countries of India Palm oil (HS Code 1511) 2025 Q1?

Indonesia (37.7% value share), Malaysia (28.5%), and Singapore dominate, with Indonesia supplying higher-grade products and Malaysia focusing on bulk shipments.

Q3. Why does the unit price differ across origin countries of India Palm oil Import?

Price gaps reflect product grades: Indonesia ships premium refined oils, while Malaysia supplies cheaper crude palm oil (73.9% of imports at USD 5.03/kg).

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

Prioritize cost-efficient crude palm oil contracts (84.4% of volume) and monitor refining margins, given heavy reliance on a few dominant traders (97% market share).

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

Southeast Asian suppliers (95% of India’s imports) benefit from stable demand but face pressure to maintain competitive pricing in this bulk-commodity market.

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

Primarily as a bulk edible oil for food processing and cooking, with crude palm oil dominating (84.4% of quantity) due to its cost efficiency.

Detailed Monthly Report

India HS1511 Import Snapshot 2025 JAN

India HS1511 Import Snapshot 2025 FEB

India HS1511 Import Snapshot 2025 MAR