Malaysia’s Palm Oil Market Share in India Rises to 35% in H1 2025 on the Back of Strong Demand
New Delhi, July 25th, 2025: The Malaysian Palm Oil Council (MPOC) participated today in the IVPA Global RoundTable @ 4.0: Navigating Tectonic Global Shifts, to discuss the topic, “Navigating Trade, Tariffs and Trust: Positioning Malaysian Palm Oil for the Indian Market.” In her address, Ms. Belvinder Sron, Chief Executive Officer of MPOC, highlighted Malaysia’s pivotal role in supporting India’s edible oil security. During Roundtable, MPOC also formalised a collaboration with the Indian Vegetable Oil Producers’ Association (IVPA) to promote the nutritional and sustainability credentials of Malaysian palm oil.
As the world’s second largest palm oil producer—with a 24% share of global production and an output of 19.34 million MT—Malaysia continues to be a reliable and consistent supplier to India, supported by MPOC’s trade and outreach initiatives.
“Over the past five years, Malaysia’s crude palm oil (CPO) exports to India have averaged a stable 2.5 million MT annually. Our market share in India has also grown from 30% in 2023 to 35% in the first half of 2025 and we expect this upward trajectory to continue through the end of the year. Our monthly exports have rebounded to 2,50,000 MT in May and June 2025 after a brief slowdown following the October 2024 peak. We anticipate this positive trend will persist into the third quarter, driven by price competitiveness, and festive restocking ahead of Diwali”, said Ms. Sron.
Celebrating three decades of engagement with India since establishing its second regional office globally in 1995, Malaysia’s position in India has been further strengthened by recent policy changes. With the July 2025 import duty adjustment, Malaysian CPO is now the most competitively priced edible oil in the Indian market. This tariff change has given Malaysia the most tariff-advantaged position among edible oils in India.
MPOC’s ongoing work in India is backed by strong fundamentals from the Malaysian supply side. The country exports the bulk of its annual palm oil production while consuming only 3 to 3.5 million MT domestically. Although total production peaked at 19.9 million MT in 2017, the expansion of mature planted areas has since plateaued, in line with the country’s environmental commitments. Over the years, sustained investments in production efficiency and sustainability have positioned Malaysian palm oil as a globally recognised premium product.
A cornerstone of this transformation is the Malaysian Sustainable Palm Oil (MSPO) certification, which is legally mandated and independently audited. As of 2025, around 90% of plantations are MSPO-certified. Backed by government support, MSPO has made sustainability more accessible, especially for small-scale farmers. The enhanced MSPO 2.0 standard, in force since January 2025, sets stricter norms on sustainability and ethics. Complementing certification, continued R&D investments are helping improve yields, reduce environmental impact, and uphold product quality, cementing Malaysia’s leadership in responsible palm oil production.
In parallel, MPOC continues to strengthen its engagement with key Indian stakeholders to build trust and expand awareness about Malaysian palm oil, while countering negative narratives such as “No Palm Oil” labels. In March 2025, MPOC signed a collaboration agreement with the Oil Technologists’ Association of India (OTAI) to jointly advance nutritional education, including support for locally conducted research highlighting the health attributes of palm oil.
The New similar collaboration with IVPA announced today includes joint advocacy on regulatory issues and a consumer education campaign focused on industry outreach through a series Bharat Ka Swaad Palm Oil Ke Saath in partnership with celebrity chef Shipra Khanna. The ongoing series, which airs on Zee TV between May and August 2025, highlights the nutritional benefits and culinary versatility of Malaysian palm oil through regional Indian recipes.