Indonesia Targets Palm Oil Exports to India to Reach 5 Million Tons by 2025, Supported by Tariff Reductions and Seed Collaboration This article has been published on InfoSAWIT English with the title

Indonesia aims to increase its palm oil exports to India to 5 million tons by 2025, up from 4.8 million tons in 2024. This increase is driven by India's decision to cut the import duty on crude palm oil (CPO) as part of a strategy to enhance domestic vegetable oil availability and control prices.

The Chairman of the Indonesian Palm Oil Entrepreneurs Association (GAPKI), Eddy Martono, stated that the tariff adjustment presents a significant opportunity for Indonesia as the world's largest palm oil producer. “After the reduction in import tariffs, I expect Indonesian palm oil exports to increase in 2025 and exceed 5 million tons,” Martono said, as reported by the Press Trust of India (PTI) recently.

India has reduced the import duty on CPO from 20% to 10%, creating a more conducive climate for imports. Throughout 2024, Indonesia's palm oil exports to India decreased to 4.8 million tons from 6 million tons in 2023. This decline occurred because CPO prices were higher than soybean and sunflower oil prices for most of 2024.

However, the price situation changed in April 2025, when CPO prices began trading below soybean oil prices, thus improving its competitiveness. “I believe there will be no issues with prices this year. I am confident that exports to India will increase in 2025,” Eddy said.

Not only in trade, but Indonesia also supports India's efforts to expand its domestic palm oil industry. As part of the National Mission on Edible Oils–Oil Palm (NMEO-OP), Indonesia is exporting 100,000 palm oil seeds to India this year to help the country achieve its target of planting 1 million hectares of palm oil by 2025–2026. Currently, the area of palm oil plantations in India is only about 350,000 hectares.

Eddy explained that India has imported around 500,000 palm oil seeds in 2023 and 2024 and will add another 100,000 seeds this year. “About 200 seeds are needed for one hectare, and Indonesia is ready to supply through a business-to-business scheme,” he explained. Indonesia is also prepared to provide technical assistance, given its experience in sustainable palm oil cultivation practices.

To strengthen bilateral cooperation, GAPKI and the Indian Vegetable Oil Producers’ Association (IVPA) recently signed a Memorandum of Understanding (MoU). This agreement aims to enhance collaboration in the palm oil sector, maintain export stability, and respond to negative issues regarding palm oil in India.

“India is a very important market for Indonesia. We hope that exports to India can stabilize after the signing of the MoU,” said Eddy. He also highlighted the importance of public education in India regarding the benefits of palm oil. “There are still many consumers in India who misunderstand Indonesian palm oil. In fact, palm oil is a very healthy oil,” he emphasized.