Malaysia’s palm oil share in India jumps to 35% in H1 2025; Diwali restocking and duty cut to fuel momentum

Malaysia has consolidated its position in India’s edible oil market, raising its share of palm oil to 35 per cent during the first half of 2025, MPOC stated. The council put this steep increase down to greater demand, price competitiveness, and a rebound in monthly export volumes.

Malaysia sent around 2.5 million metric tonnes (MT) of palm oil to India every year for the last five years. In May and June 2025, exports for the months returned to 2,50,000 MT following a slight decline after reaching its October 2024 high, MPOC CEO Belvinder Sron said at a roundtable organized by the Indian Vegetable Oil Producers’ Association (IVPA).

As the Diwali season is looming, Malaysian authorities believe that this rising trend will be sustained during the third quarter, supported by celebratory restocking as well as improved pricing.

One of the main forces behind Malaysia’s comeback in India’s import of edible oils is the latest change in import tariffs. After a reduction in July 2025, Malaysian crude palm oil (CPO) is now the most price-competitive edible oil in India, said the MPOC. This provides Malaysian sellers with a competitive advantage over competitors, including Indonesia, particularly when FMCG companies and food processors are accelerating purchases in preparation for the festive season.

India is one of the world’s largest importers of edible oil and is dependent mainly on palm oil for processed foods, snacks, and personal care products. Palm oil is a critical input across an array of industries, from bakery to cosmetics.

Aside from exports, Malaysia is also increasing its industry involvement in India. The MPOC has signed a formal strategic partnership with IVPA to advocate for the nutritional benefits and sustainability features of Malaysian palm oil. This involves a collaborative consumer education initiative and lobbying for regulatory concerns.

“We are not only concentrating on commerce but also on long-term trust and transparency. The partnership is designed to benefit from shifting consumer expectations and industry norms in India,” stated Sron.

Being the world’s second-largest palm oil producer, Malaysia accounts for approximately 24 per cent of global production, churning out 19.34 million MT each year. Although Indonesia is still the largest exporter, Malaysia has been providing consistent supplies to India, its biggest buyer.

India’s vegetable oil imports are expected to continue strong over the next few months, and with the price of palm oil relative to sunflower and soybean oil, Malaysia is set to widen its dominance.

With duty benefits, celebratory demand, and niche industry engagement, Malaysia is strategically set to keep the momentum in India’s palm oil market till 2025. With regulatory and sustainability narratives being the focus, such industry associations as MPOC-IVPA have the potential to be game-changers in influencing future trade patterns.

Tags: Market, India, Malaysia, palm oil, edible oil