Malaysia’s Palm Oil Market Share In India Rises To 35% In H1 2025 Amid Strong Demand

Malaysia’s Palm Oil Market Share in India Rises to 35% in H1 2025 Amid Strong Demand

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Supplying 2.5 million MT of palm oil to India annually, Malaysian Palm Oil Council (MPOC) reaffirms its commitment to sustainable trade and growth at the IVPA Global RoundTable.

Malaysia has emerged as a stronger player in India’s edible oil sector, with its palm oil market share rising to 35% in the first half of 2025—up from 30% in 2023. The surge is driven by robust demand, competitive pricing, and sustained outreach efforts by the Malaysian Palm Oil Council (MPOC).

Speaking at the IVPA Global RoundTable @ 4.0 in New Delhi, MPOC CEO Belvinder Sron underlined Malaysia’s significant role in supporting India’s edible oil security. The session titled “Navigating Trade, Tariffs and Trust: Positioning Malaysian Palm Oil for the Indian Market” explored trade trends and prospects. During the Roundtable, MPOC also formalised a collaboration with the Indian Vegetable Oil Producers’ Association (IVPA) to promote the nutritional and sustainability credentials of Malaysian palm oil.

Malaysia’s Palm Oil Market Share in India Rises to 35% in H1 2025 Amid Strong Demand

Malaysia, the world’s second-largest producer of palm oil, supplies an average of 2.5 million metric tonnes (MT) of crude palm oil (CPO) annually to India. In May and June 2025, monthly exports rebounded to 2.5 lakh MT after a brief post-peak slowdown following October 2024. 

“We anticipate this positive trend to continue into the festive season, aided by Malaysia’s price competitiveness and Diwali restocking,” said Sron. She also credited the July 2025 import duty adjustment, which has made Malaysian CPO the most competitively priced edible oil in India, granting it a significant tariff advantage.

Marking 30 years of partnership with India since the establishment of its regional office in 1995, MPOC’s efforts are underpinned by strong supply-side fundamentals. While Malaysia produces around 19.34 million MT of palm oil annually, it consumes only 3 to 3.5 million MT domestically, ensuring a consistent export flow.

Sustainability remains a cornerstone of Malaysia’s palm oil strategy. The Malaysian Sustainable Palm Oil (MSPO) certification—now covering 90% of plantations—is legally mandated and independently audited. The upgraded MSPO 2.0, effective January 2025, introduces more rigorous standards on ethics and environmental stewardship. Government support has enabled even small farmers to participate in this green transition.

MPOC is also countering misinformation and promoting consumer awareness in India. In March 2025, it signed a pact with the Oil Technologists’ Association of India (OTAI) to support nutritional research and education.



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