India Soybean Oil HS1507 Import Data 2025 May Overview

India Soybean Oil (HS 1507) 2025 May Import: Key Takeaways

India’s Soybean oil imports under HS Code 1507 in May 2025 reveal a market split between premium refined oil from Argentina (48% value share) and cost-effective crude shipments from Nepal (98% volume share), highlighting stark grade disparities. Import volumes surged early 2025, signaling strong demand, while high buyer concentration raises supply chain risks. This analysis, based on cleanly processed Customs data from the yTrade database, underscores the need for strategic sourcing to balance cost and quality amid 45% import duties.

India Soybean Oil (HS 1507) 2025 May Import Background

What is HS Code 1507?

HS Code 1507 covers soybean oil and its fractions, whether or not refined, but not chemically modified. It is a key edible oil used in food processing, cooking, and industrial applications like biodiesel. Global demand remains stable due to its affordability and versatility, making it a critical commodity in India's agri-import basket.

Current Context and Strategic Position

India's soybean oil imports under HS Code 1507 face a 45% basic customs duty and 5% IGST, with no significant policy changes reported in May 2025 [Cybex]. Import volumes surged by 95.24% in value and 62.16% in volume year-on-year in early 2025, reflecting strong domestic demand despite high tariffs [GTAIC]. India's reliance on imports underscores the need for market vigilance, especially with 2025 trade dynamics influenced by global supply chains and local policy stability.

India Soybean Oil (HS 1507) 2025 May Import: Trend Summary

Key Observations

India's Soybean oil imports under HS Code 1507 for May 2025 reached a value of $1.15 billion with a volume of 251.03 million kg, indicating sustained high demand despite policy barriers.

Price and Volume Dynamics

The month-over-month trend from April to May shows a slight value increase from $1.11 billion to $1.15 billion, while volume dipped from 266.60 million kg to 251.03 million kg, suggesting higher unit prices or a shift in import grades. Year-over-year, the surge aligns with industry stock replenishment cycles and robust domestic consumption, as edible oil demand often remains stable through mid-year. This growth momentum, with value rising steadily from January's $1.33 billion, reflects typical agricultural import patterns where supply gaps drive volumes despite cost pressures.

External Context and Outlook

The import surge is directly linked to India's maintained high tariff structure, with a 45% basic duty and 5% IGST on HS Code 1507, as reported by [Cybex], which hasn't dampened demand due to domestic production shortfalls. This policy context, coupled with a 95.24% YoY value jump in early 2025 per GTAIC data, underscores strong market fundamentals. Looking ahead, continued import reliance is expected unless domestic harvests improve, keeping the focus on global price volatility and trade policy stability.

India Soybean Oil (HS 1507) 2025 May Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's Soybean oil HS Code 1507 Import in 2025 May was heavily concentrated in crude oil. The crude soya-bean oil sub-code (15071000) held 81.73% of the total import value despite accounting for only 1.33% of the quantity, indicating a high-value specialization with a unit price of USD 4.96 per kilogram. This extreme price disparity highlights its role as the premium, bulk import category. A minor sub-code (15079090) with a very high unit price of USD 24.61 per kilogram was present but isolated from the main analysis due to its negligible volume share.

Value-Chain Structure and Grade Analysis

The remaining non-anomalous trade splits into two clear value-chain stages. The dominant volume category is refined soya-bean oil (15079010), which represented 98.65% of the quantity at a lower unit price of USD 3.38 per kilogram. This structure confirms that India's Soybean oil import under HS Code 1507 operates as a bulk commodity market, where crude oil serves as the high-value raw input and refined oil as the high-volume finished product. Both are fungible goods tied to global price indices rather than branded or highly differentiated items.

Strategic Implication and Pricing Power

For importers, this market offers limited pricing power due to its commodity nature. The high basic customs duty of 45% on crude oil [Cybex] makes cost-efficient sourcing critical. Strategic focus should remain on securing crude oil for maximum value retention, while the refined segment requires high-volume, low-margin operations. Market entry or expansion should prioritize relationships with reliable suppliers of crude grades to navigate India's tariff-protected yet volatile import landscape for Soybean oil in 2025.

Check Detailed HS 1507 Breakdown

India Soybean Oil (HS 1507) 2025 May Import: Market Concentration

Geographic Concentration and Dominant Role

In May 2025, India's import of Soybean oil under HS Code 1507 was heavily concentrated, with Argentina leading as the dominant supplier, accounting for 48.02% of the import value but only 43.58% of the weight, indicating a higher unit price of around USD 5.04 per kg and suggesting imports of premium, refined oil grades. Nepal, despite a high quantity share of 98.65%, has a lower value ratio of 18.25%, pointing to cheaper, crude oil imports at approximately USD 1.52 per kg, highlighting a clear grade disparity in sourcing patterns.

Partner Countries Clusters and Underlying Causes

The import data reveals three main clusters: first, South American suppliers like Argentina and Brazil, which provide high-value, refined oil likely due to advanced processing capabilities and trade agreements. Second, Nepal stands out with massive volume but low value, possibly due to geographic proximity and cost-effective crude oil shipments. Third, smaller players like the US and Iraq contribute moderately, potentially filling niche demands or serving as backup sources during supply fluctuations.

Forward Strategy and Supply Chain Implications

For buyers, the high import duties of 45% basic customs duty and 5% IGST [Cybex] make cost management critical; focusing on value-driven sources like Argentina for quality or volume-driven ones like Nepal for affordability can optimize spending. Supply chains should prioritize diversification to mitigate risks from over-reliance on single regions, especially with the surge in import volumes noted in early 2025 (GTAIC), ensuring stable and efficient soybean oil imports into India.

Table: India Soybean Oil (HS 1507) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Soybean Oil (HS 1507) 2025 May Import: Action Plan for Soybean Oil Market Expansion

Strategic Supply Chain Overview

India Soybean oil Import 2025 May under HS Code 1507 is a bulk commodity market. Price is driven by oil grade and global supply shifts. Crude oil (HS 15071000) carries high value but faces a 45% customs duty. Refined oil (HS 15079010) dominates volume at lower margins.

Supply chains must prioritize grade-specific sourcing. High-value crude oil comes mainly from Argentina. High-volume crude flows from Nepal. This creates a two-tier import structure. Over-reliance on few buyers and regions increases volatility risk. Supply security depends on diversifying sources and managing tariff costs.

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

• Target high-frequency buyers with bulk crude oil offers. They drive 90% of volume. This secures stable, large-scale orders.
• Diversify supply sources beyond Argentina and Nepal. Use trade data to identify backup suppliers like Brazil or the US. This reduces geopolitical and supply chain risks.
• Negotiate based on oil grade and unit price data. Match crude oil imports to processing needs. This maximizes value retention under high tariff conditions.
• Monitor buyer frequency patterns for inventory planning. Align shipments with regular demand cycles. This prevents overstock and optimizes cash flow.
• Leverage HS Code 1507 sub-category analysis for customs planning. Clear classification avoids delays and reduces compliance costs.

Take Action Now —— Explore India Soybean oil Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Soybean oil Import 2025 May?

India's Soybean oil imports in May 2025 show sustained high demand despite a 45% customs duty, with a slight value increase ($1.15B) despite lower volume (251.03M kg), indicating higher unit prices or grade shifts. This reflects domestic production shortfalls and stable edible oil consumption.

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

Argentina dominates with 48.02% of import value, followed by Nepal (18.25% value, 98.65% volume). South American suppliers like Brazil and niche players like the US and Iraq fill smaller roles.

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

Price differences stem from grade specialization: Argentina supplies premium refined oil (~$5.04/kg), while Nepal’s crude oil trades at ~$1.52/kg. Crude oil (15071000) holds 81.73% of value despite minimal volume share.

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

Importers should prioritize high-value crude oil (15071000) for cost efficiency and secure relationships with dominant high-frequency buyers, who control 90% of trade. Diversifying suppliers mitigates over-reliance on Argentina.

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

Suppliers must cater to India’s bulk commodity demand, with Argentina’s refined oil and Nepal’s crude oil as key benchmarks. High-volume contracts with India’s dominant buyers offer stability but require tariff-aware pricing.

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

Soybean oil imports serve as edible oil for domestic consumption, with crude oil (15071000) as a high-value raw input and refined oil (15079010) as the bulk finished product tied to global commodity markets.