Malaysia has consolidated its place in India’s edible oil market, elevating its share of palm oil to 35 per cent through the first half of 2025, MPOC acknowledged. The council put this steep enhance right down to better demand, worth competitiveness, and a rebound in month-to-month export volumes.
Malaysia despatched round 2.5 million metric tonnes (MT) of palm oil to India yearly for the final 5 years. In Might and June 2025, exports for the months returned to 2,50,000 MT following a slight decline after reaching its October 2024 excessive, MPOC CEO Belvinder Sron mentioned at a roundtable organized by the Indian Vegetable Oil Producers’ Affiliation (IVPA).
Because the Diwali season is looming, Malaysian authorities consider that this rising development can be sustained through the third quarter, supported by celebratory restocking in addition to improved pricing.
What’s behind the rally?
One of many most important forces behind Malaysia’s comeback in India’s import of edible oils is the most recent change in import tariffs. After a discount in July 2025, Malaysian crude palm oil (CPO) is now probably the most price-competitive edible oil in India, mentioned the MPOC. This supplies Malaysian sellers with a aggressive benefit over opponents, together with Indonesia, significantly when FMCG corporations and meals processors are accelerating purchases in preparation for the festive season.
India is among the world’s largest importers of edible oil and relies primarily on palm oil for processed meals, snacks, and private care merchandise. Palm oil is a important enter throughout an array of industries, from bakery to cosmetics.
Trade partnership focuses on sustainability
Except for exports, Malaysia can be rising its trade involvement in India. The MPOC has signed a proper strategic partnership with IVPA to advocate for the dietary advantages and sustainability options of Malaysian palm oil. This includes a collaborative client training initiative and lobbying for regulatory considerations.
“We’re not solely concentrating on commerce but additionally on long-term belief and transparency. The partnership is designed to profit from shifting client expectations and trade norms in India,” acknowledged Sron.
International provider with an exemplary monitor report
Being the world’s second-largest palm oil producer, Malaysia accounts for about 24 per cent of worldwide manufacturing, churning out 19.34 million MT annually. Though Indonesia continues to be the most important exporter, Malaysia has been offering constant provides to India, its largest purchaser.
India’s vegetable oil imports are anticipated to proceed robust over the subsequent few months, and with the worth of palm oil relative to sunflower and soybean oil, Malaysia is about to widen its dominance.
With obligation advantages, celebratory demand, and area of interest trade engagement, Malaysia is strategically set to maintain the momentum in India’s palm oil market until 2025. With regulatory and sustainability narratives being the main target, such trade associations as MPOC-IVPA have the potential to be game-changers in influencing future commerce patterns.
Keep forward of the curve with NextBusiness 24. Discover extra tales, subscribe to our publication, and be a part of our rising neighborhood at nextbusiness24.com