How much Palm oil does India consume

Source CNBC Tv18

Posted on January 2, 2025

India consumes 23-25 million tonnes of edible oil annually, with 8-10 million tonnes being palm oil, which accounts for 60% of the imported vegetable oils. Palm oil is used in cooking, processed foods, and everyday products like cosmetics and cleaning agents. Its demand has risen due to its affordability, long shelf life, and neutral taste. Prices increased by 22% in 2024, but they are expected to stabilize in 2025. Most palm oil imports come from Indonesia, Malaysia, and Thailand.

India consumes 23 to 25 million tonnes of edible oil a year. Of that, nearly 8-10 million tonnes is Palm oil. 90% of this palm oil is consumed as food.

About 15 to 16 million tonnes of edible consumed in India is imported from other countries. Palm oil accounts for 60% of all imported vegetable oils and 37% of overall edible oil consumed. Most of India’s palm oil imports come from Indonesia, Malaysia, and Thailand.

Edible oils are used actively for cooking, frying, garnishing and seasoning. Palm oil in India is sold as a direct edible oil or as a blend with other oils like soybean, sunflower, rice bran oil, etc.

Edible oils are used actively for cooking, frying, garnishing and seasoning. Palm oil in India is sold as a direct edible oil or as a blend with other oils like soybean, sunflower, rice bran oil, etc.

Palm oil is used in processed foods like bread, biscuits, instant noodles, chips, chocolates, ice creams, margarine, sweets, pizzas and doughnuts. Palm oil is also used in Indian fried snacks like samosas, farsan, namkeen, and French fries.

Palm oil is in nearly everything: lipsticks, toothpaste, soaps, shampoos, and deodorant to detergents and house cleaners. It is said that almost 50% of all packaged products on a supermarket shelf will have a derivative of Palm oil.

India’s palm oil demand has increased in recent years because it’s cheaper, has a longer shelf life, and has a neutral taste.

In the last decade, annual palm oil demand in India has been stable between 8.5 and 9.5 million tonnes. The import of refined, bleached, and deodorised (RBD) palm olein was placed under open general licence in the mid-1990s.

The volume of imported oils started increasing thereafter as the industry shifted to cheaper imported oils.

The price of palm oil increased 22% in 2024. The industry now expects the prices to stabilise in 2025 and the demand to improve.