In India, Malaysia’s palm oil share jumped to 35% of H1 in 2025; Diwali restocking and layoffs are fueling
Malaysia has consolidated its position in India’s edible oil market, increasing its share of palm oil to 35% in the first half of 2025, MPOC said. The Council attributed this dramatic growth to higher demand, price competitiveness and a rebound in monthly export volumes.
Over the past five years, Malaysia has sent about 2.5 million tons of palm oil to India each year. MPOC CEO Belvinder Sron said at a roundtable organized by the Indian Vegetable Oil Producers Association (IVPA) that in May and 2025, exports recovered to 250,000 tons in several months after a slight decline in months.
With the imminent Diwali season, Malaysian authorities believe that the upward trend will remain in the third quarter and will be celebrated with restocking as well as improved pricing.
What is behind the rally?
One of the main forces Malaysia’s comeback in India’s imports of cooking oil is the latest changes in import tariffs. Malaysian crude palm oil (CPO) is now the most competitively priced cooking oil in India after the decline in July 2025, MPOC said. This provides Malaysian sellers with a competitive advantage over competitors including Indonesia, especially as FMCG companies and food processors are accelerating their purchases to prepare for the festival.
India is one of the world’s largest importers of edible oil, relying primarily on palm oil for processed foods, snacks and personal care products. Palm oil is a key input in a range of industries from bakeries to cosmetics.
Industry Partnerships Focus on Sustainability
In addition to exports, Malaysia is also increasing its industry participation in India. MPOC has signed a formal strategic partnership with IVPA to advocate for the nutritional benefits and sustainability characteristics of Malaysian palm oil. This involves a collaborative consumer education program and lobbying for regulatory issues.
“We focus not only on business, but also on long-term trust and transparency. The partnership aims to benefit from consumer expectations and industry norms in India,” SRON said.
Global suppliers with an exemplary record
Malaysia is the world’s second largest palm oil producer, accounting for about 24% of global production, accounting for 19.34 million tons per year. Although Indonesia remains the largest exporter, Malaysia has been providing consistent supply to its largest buyers.
India’s vegetable oil imports are expected to continue to be strong in the coming months, and the price of palm oil is expected to expand its advantage over sunflower and soybean oil.
With the benefits of tariffs, celebrating demand and participation of niche industries, Malaysia is strategically aiming to maintain momentum in the Indian palm oil market until 2025. Since regulatory and sustainability narratives are the focus, industry links such as MPOC-IVPA have the potential to become game changers that influence future trade patterns.
