PALMOILMAGAZINE, JAKARTA — Indonesia is targeting palm oil exports to India to reach 5 million tons in 2025, up from 4.8 million tons in 2024. The increase follows India’s decision to slash import duties on crude palm oil (CPO) as part of its efforts to boost domestic edible oil supply and control prices.
According to Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI), the tariff adjustment presents a major opportunity for Indonesia, the world’s largest palm oil producer. “With the lower import duty, I expect Indonesian palm oil exports to India will surpass 5 million tons in 2025,” Martono told the Press Trust of India (PTI).
India recently reduced its import duty on CPO from 20% to 10%, creating a more favorable environment for imports. In 2024, Indonesia’s palm oil exports to India dropped to 4.8 million tons from 6 million tons in 2023, mainly due to higher CPO prices relative to soybean and sunflower oils during most of 2024.
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However, since April 2025, CPO prices have begun trading below those of soybean oil, improving price competitiveness. “I don’t see pricing as an issue this year. I am confident exports to India will rise in 2025,” Eddy added.
Beyond trade, Indonesia is also supporting India’s efforts to expand its domestic palm oil industry. Under the National Mission on Edible Oils–Oil Palm (NMEO-OP), Indonesia is exporting 100,000 oil palm seedlings to India this year to help the country reach its ambitious 1-million-hectare planting target by 2025–2026. India currently has about 350,000 hectares of oil palm plantations.
Eddy noted that India imported around 500,000 palm seedlings in 2023 and 2024, and plans to add another 100,000 this year. “It takes roughly 200 seedlings per hectare, and Indonesia is ready to supply them under a business-to-business scheme,” he said, adding that Indonesia is also prepared to offer technical assistance based on its long track record in sustainable palm cultivation.
To further strengthen bilateral cooperation, GAPKI and the Indian Vegetable Oil Producers’ Association (IVPA) recently signed a Memorandum of Understanding (MoU). The agreement is aimed at expanding collaboration, ensuring export stability, and addressing negative perceptions about palm oil in India.
“India is a very important market for Indonesia. We hope exports will stabilize following the MoU,” Eddy emphasized, while also noting the need for greater public education in India about palm oil’s benefits. “Many consumers in India still misunderstand Indonesian palm oil, whereas in reality, it is a very healthy oil,” he concluded. (P2)
