India becomes largest buyer of oil palm seed from Malaysia

India has become the largest importer of Malaysian oil palm germinated seeds as it seeks to boost domestic palm oil production, The Economist Times reports. Demand has surged as the country steps up efforts to boost domestic palm oil production and reduce reliance on imports. Malaysia welcomes the surge in demand, seeing it as a testament to the quality of its seeds and the strength of the partnership.

India became the top market for Malaysian palm oil in 2024, importing 3.03 million tonnes of the product, accounting for 17.9% of Malaysia’s total palm oil exports.

India aims to expand its oil palm cultivation area to 1 million hectares by 2025-26 and reach nearly 2.8 million tonnes of crude palm oil by 2029-30 under its National Edible Oils Mission.

As of mid-2025, the country has about 370,000 hectares of oil palm under cultivation, with a focus on the northeastern states and island regions. Most deals will now be done through enterprise-to-enterprise agreements, with Malaysian exporters providing quality planting materials and technical expertise.

The Palm Oil Board of Malaysia has developed new high-yielding varieties through breeding programs that have the potential to produce more than 30 tonnes of fresh fruit bunches per hectare per year, almost double Malaysia’s national average of 15.47-16.73 tonnes recorded during 2020-2023.

The improved varieties also feature slower height growth, increasing the economic life from 25 to more than 30 years, and making harvesting easier, the publication notes. Research is currently underway to develop varieties that are resistant to climate change and have increased drought tolerance.

Earlier, the Government of India, as part of the National Oil Palm Mission, planned to expand the area of palm plantations from 0.6 million to 1 million hectares.

Tags: India, Malaysia, palm oil