Southern Asia: Palm Kernel Oil Market 2024

Palm Kernel Oil Exports

Exports in Southern Asia

In 2022, shipments abroad of palm kernel and babassu oil decreased by -55.1% to X tons, falling for the third consecutive year after two years of growth. Overall, exports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 177%. Over the period under review, the exports hit record highs at X tons in 2015; however, from 2016 to 2022, the exports failed to regain momentum.

In value terms, palm kernel oil exports declined dramatically to $X in 2022. Over the period under review, exports, however, showed a buoyant increase. The most prominent rate of growth was recorded in 2014 with an increase of 516% against the previous year. Over the period under review, the exports reached the maximum at $X in 2015; however, from 2016 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

India prevails in exports structure, recording X tons, which was approx. 97% of total exports in 2022. Sri Lanka (X tons) held a relatively small share of total exports.

India was also the fastest-growing in terms of the palm kernel and babassu oil exports, with a CAGR of +1.3% from 2012 to 2022. Sri Lanka (-16.4%) illustrated a downward trend over the same period. While the share of India (+18 p.p.) increased significantly in terms of the total exports from 2012-2022, the share of Sri Lanka (-9 p.p.) displayed negative dynamics.

In value terms, India ($X) remains the largest palm kernel oil supplier in Southern Asia, comprising 93% of total exports. The second position in the ranking was held by Sri Lanka ($X), with a 5.5% share of total exports.

In India, palm kernel oil exports increased at an average annual rate of +8.6% over the period from 2012-2022.

Export Prices by Country

In 2022, the export price in Southern Asia amounted to $X per ton, falling by -16.7% against the previous year. Overall, the export price, however, showed a prominent increase. The most prominent rate of growth was recorded in 2014 when the export price increased by 157%. The level of export peaked at $X per ton in 2015; however, from 2016 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Sri Lanka ($X per ton), while India amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Sri Lanka (+9.1%).

Palm Kernel Oil Imports

Imports in Southern Asia

In 2022, approx. X tons of palm kernel and babassu oil were imported in Southern Asia; dropping by -32.6% against the previous year's figure. In general, imports continue to indicate a deep slump. The growth pace was the most rapid in 2013 with an increase of 73% against the previous year. As a result, imports reached the peak of X tons. From 2014 to 2022, the growth of imports remained at a lower figure.

In value terms, palm kernel oil imports dropped sharply to $X in 2022. Over the period under review, imports saw a pronounced descent. The growth pace was the most rapid in 2021 when imports increased by 92% against the previous year. The level of import peaked at $X in 2013; however, from 2014 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, India (X tons) represented the key importer of palm kernel and babassu oil, mixing up 77% of total imports. Bangladesh (X tons) took the second position in the ranking, distantly followed by Pakistan (X tons). All these countries together took near 20% share of total imports. Sri Lanka (X tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to palm kernel oil imports into India stood at -6.4%. Bangladesh experienced a relatively flat trend pattern. Pakistan (-2.4%) and Sri Lanka (-2.6%) illustrated a downward trend over the same period. While the share of Bangladesh (+6 p.p.) and Pakistan (+1.7 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of India (-8.3 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, India ($X) constitutes the largest market for imported palm kernel and babassu oil in Southern Asia, comprising 81% of total imports. The second position in the ranking was taken by Bangladesh ($X), with a 12% share of total imports. It was followed by Pakistan, with a 5.5% share.

In India, palm kernel oil imports plunged by an average annual rate of -2.9% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Bangladesh (-0.2% per year) and Pakistan (-2.6% per year).

Import Prices by Country

In 2022, the import price in Southern Asia amounted to $X per ton, with an increase of 8.1% against the previous year. Import price indicated tangible growth from 2012 to 2022: its price increased at an average annual rate of +3.0% 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 +120.9% against 2019 indices. The pace of growth appeared the most rapid in 2021 when the import price increased by 71%. The level of import peaked in 2022 and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was India ($X per ton), while Sri Lanka ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+3.6%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

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