India: Palm Kernel Oil Market 2024

Palm Kernel Oil Market Size in India

The Indian palm kernel oil market fell rapidly to $X in 2022, reducing by -29.7% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption recorded a pronounced decrease. As a result, consumption reached the peak level of $X. From 2014 to 2022, the growth of the market failed to regain momentum.

Palm Kernel Oil Exports

Exports from India

After two years of decline, shipments abroad of palm kernel and babassu oil increased by 23% to X tons in 2022. Overall, exports continue to indicate a slight increase. The pace of growth was the most pronounced in 2019 with an increase of 303%. The exports peaked at X tons in 2015; however, from 2016 to 2022, the exports failed to regain momentum.

In value terms, palm kernel oil exports declined significantly to $X in 2022. In general, exports showed resilient growth. The growth pace was the most rapid in 2014 with an increase of 603% against the previous year. The exports peaked at $X in 2015; however, from 2016 to 2022, the exports failed to regain momentum.

Exports by Country

Nepal (X tons), Singapore (X tons) and Bangladesh (X tons) were the main destinations of palm kernel oil exports from India, with a combined 77% share of total exports. Australia, the United Arab Emirates, Hong Kong SAR and Japan lagged somewhat behind, together comprising a further 11%.

From 2012 to 2022, the biggest increases were recorded for Japan (with a CAGR of +279.6%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, the largest markets for palm kernel oil exported from India were Singapore ($X), Nepal ($X) and Bangladesh ($X), together comprising 65% of total exports. Australia, the United Arab Emirates, Hong Kong SAR and Japan lagged somewhat behind, together accounting for a further 16%.

Among the main countries of destination, Japan, with a CAGR of +230.7%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average palm kernel oil export price stood at $X per ton in 2022, falling by -35.6% against the previous year. Over the period under review, the export price, however, enjoyed strong growth. The pace of growth was the most pronounced in 2014 when the average export price increased by 162% against the previous year. The export price peaked at $X per ton in 2018; however, from 2019 to 2022, the export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2022, amid the top suppliers, the country with the highest price was Australia ($X per ton), while the average price for exports to Nepal ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Iran (+13.0%), while the prices for the other major destinations experienced more modest paces of growth.

Palm Kernel Oil Imports

Imports into India

Palm kernel oil imports into India shrank markedly to X tons in 2022, which is down by -35.9% compared with the year before. Over the period under review, imports continue to indicate a abrupt slump. The pace of growth appeared the most rapid in 2013 with an increase of 89%. As a result, imports reached the peak of X tons. From 2014 to 2022, the growth of imports failed to regain momentum.

In value terms, palm kernel oil imports fell sharply to $X in 2022. In general, imports recorded a perceptible slump. The growth pace was the most rapid in 2021 when imports increased by 84% against the previous year. Over the period under review, imports attained the maximum at $X in 2013; however, from 2014 to 2022, imports remained at a lower figure.

Imports by Country

In 2022, Malaysia (X tons) constituted the largest palm kernel oil supplier to India, accounting for a 88% share of total imports. Moreover, palm kernel oil imports from Malaysia exceeded the figures recorded by the second-largest supplier, Papua New Guinea (X tons), more than tenfold. Indonesia (X tons) ranked third in terms of total imports with a 2.9% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Malaysia totaled +16.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Papua New Guinea (+21.6% per year) and Indonesia (-33.3% per year).

In value terms, Malaysia ($X) constituted the largest supplier of palm kernel and babassu oil to India, comprising 88% of total imports. The second position in the ranking was taken by Papua New Guinea ($X), with a 5.2% share of total imports. It was followed by Indonesia, with a 2.6% share.

From 2012 to 2022, the average annual growth rate of value from Malaysia totaled +20.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Papua New Guinea (+27.8% per year) and Indonesia (-31.5% per year).

Import Prices by Country

The average palm kernel oil import price stood at $X per ton in 2022, surging by 14% against the previous year. Overall, import price indicated a perceptible increase from 2012 to 2022: its price increased at an average annual rate of +3.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, palm kernel oil import price increased by +139.1% against 2019 indices. The most prominent rate of growth was recorded in 2021 when the average import price increased by 72% against the previous year. The import price peaked in 2022 and is likely to see steady growth in years to come.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the countries with the highest prices were Liberia ($X per ton) and Papua New Guinea ($X per ton), while the price for Indonesia ($X per ton) and Malaysia ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Liberia (+53.2%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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