PALMOILMAGAZINE, JAKARTA – India continues to solidify its position as a strategic export destination for Indonesian palm oil, supported by steady growth and expanding downstream demand.
Wijayanto, Director of Agricultural and Forestry Product Exports at Indonesia’s Ministry of Trade, revealed that over the past five years, Indonesia’s exports to India have grown at an average annual rate of 5.6 percent. This figure significantly outpaces the global import growth trend, which stood at around 2.5 percent during the same period.
In 2024, India was recorded as the world’s largest palm oil importer, with total imports reaching 8.6 million tons—equivalent to approximately 20 percent of global imports under HS Code 1511. Of that volume, nearly 50 percent was supplied by Indonesia, reinforcing the country’s dominant foothold in this key market.
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Expanding Beyond Crude Palm Oil
Wijayanto also highlighted strong growth in India’s energy and palm-derived product exports. Between 2020 and 2024, India’s exports in this segment expanded by 14.5 percent, reaching 4.5 million tons. A substantial portion of these products was shipped to major destinations such as the United Arab Emirates.
“Demand is rising not only for crude palm oil, but also for biofuels, palm acid oil, palm oil mill effluent, as well as bio-plastics and fine chemicals. The raw materials for many of these products largely originate from Indonesia,” Wijayanto stated, as quoted by Palmoilmagazine.com from InfoSAWIT.
This indicates a deepening integration of supply chains, where Indonesian feedstock supports India’s downstream industries, which in turn serve regional and global markets.
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Broadening Export Destinations
India’s export footprint is also expanding. Shipments to Saudi Arabia, for instance, surged by 59.4 percent over the past four years, reaching 17 million tons in 2024.
The data underscore a strategic reality: India is not merely a buyer of Indonesian palm oil. It is also an industrial partner, processing Indonesian raw materials into higher-value products for re-export.
For Indonesia, maintaining competitiveness in price, supply stability, and sustainability standards will be essential to securing its position in this crucial and evolving market. (P2)
