Indonesia’s Palm Oil Exports to India to Exceed 5 Million Tonnes in 2025
Indonesia expects palm oil exports to India to exceed 5 million tonnes in 2025, boosted by India’s tariff cuts and lower prices. Indonesia is also supplying palm seeds to support India’s palm cultivation drive. Both nations signed an MoU to strengthen collaboration and address misconceptions about palm oil’s health impacts.
New Delhi, Jul 29 (PTI) Indonesia expects palm oil exports to India to exceed the 5 million-tonnes mark in 2025, up from 4.8 million tonnes in 2024, following India’s decision to cut import tariffs, a senior industry official said.
The world’s top palm oil producer is also shipping 100,000 germinated palm seeds to India this year to support the South Asian nation’s ambitious plan to expand palm cultivation to 1 million hectares by 2025-26, Indonesia Palm Oil Council (IPOC) chairman Eddy Martono told PTI in an interview.
“After the decrease in import tariffs, Indonesia palm oil imports will increase in 2025. I expect it to be more than 5 million tonnes,” Martono said.
India lowered basic customs duty on crude palm oil to 10 per cent, from 20 per cent, as part of efforts to boost domestic edible oil availability and control prices.
Indonesia’s palm oil exports to India fell to 4.8 million tonnes in 2024 calendar year, from 6 million tonnes in 2023, partly due to higher palm oil prices compared to soybean and sunflower oils for most of 2024.
However, palm oil prices have traded below soybean oil since April 2025, improving competitiveness.
“I think there is no problem with the price this year. In 2025, I am sure we will increase exports to India,” Martono said.
India is ramping up palm seed imports as part of its National Mission on Edible OilsOil Palm (NMEO-OP), which aims to expand cultivation from the current 350,000 hectares to 1 million hectares by 2025-26.
The country purchased about 500,000 seeds in 2023 and 2024 combined, with 100,000 more expected this year, Martono said. About 200 palm seeds are required for cultivation per hectare.
Indonesia supports palm seed exports to India through business-to-business arrangements and can provide technical guidance given its experience in palm cultivation, he added.
IPOC and the Indian Vegetable Oil Producers’ Association (IVPA) recently signed a Memorandum of Understanding to enhance collaboration in the palm oil sector. “India is a very important market for Indonesia. Hope to see stable exports to India after the MoU,” Martono said.
The partnership also aims to address consumer concerns about palm oil’s health impacts in India.
“Consumers in India still have misconceptions about Indonesian palm oil. Palm oil is very healthy oil,” Martono said, adding that IPOC is collaborating with IVPA to counter negative campaigns about Indonesian palm oil.
India is the world’s largest importer and consumer of edible oils.
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Source : Rediff.com
