India Becomes Top Buyer of Malaysia's Oil Palm Seeds

• India is now Malaysia’s top palm oil importer, with 3.03 million tonnes imported in 2024.
• India is expanding palm cultivation, aiming for 1 million hectares by 2025–26.
• Malaysia is promoting high-yield, sustainable palm oil to boost productivity and meet demand.

India has quickly become the largest importer of germinated oil palm seeds from Malaysia under its fast-tracked development to increase domestic palm oil production and lessen reliance on imports.

Malaysian Palm Oil Board Director General Ahmad Parveez Ghulam Kadir said, "There has been a noticeable increase in demand for Malaysian oil palm seeds, particularly from India".

In 2024 alone, India imported 3.03 million tonnes of palm oil from Malaysia, which constituted 17.9% of Malaysia's palm oil exported or approximately the same amount was exported to India and become the first country's palm oil exported to.

"Malaysia welcomes this development as it reflects confidence in the quality of our seeds and our longstanding partnership with India...While Malaysia has seen some moderation in export volumes to India, we remain a key and reliable supplier, and the Indian market continues to be a priority", Kadir added.

India's palm oil development, under the National Mission on Edible Oils-Oil Palm, plans to take palm oil cultivation to one million hectares by 2025-26 periods with projected crude palm oil productions of 2.8 million tonnes by 2029-30.

He stated, "Current Malaysian commercial seeds are suitable for cultivation in India with proper farming practices and adequate irrigation... Research efforts are under way to develop climate-resilient varieties with improved drought tolerance, though none have been commercially released yet".

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India already has about 370,000 hectares of palm oil cultivation as of mid-2025, with high activity in the north eastern states and island territories.

He also added, "The seed trade, however, remains largely informal, with supplies conducted on an ad hoc basis through one-off consignments without formal contracts or long-term agreements".

The vast majority of imports are through business to business, and are being given by Malaysian suppliers that offer good planting materials as well as technical support.

This growth is happening amidst a moderation in Malaysia's palm oil exports to India as New Delhi slashes its tariffs on crude palm oil imports in an attempt to stabilize local supplies and consumer prices.

In the face of that, Malaysia is building on its connections in the food and hospitality sectors. Moreover, they are promoting their sustainable palm oil using the Malaysian Sustainable Palm Oil (MSPO).

The Malaysian Palm Oil Board also launched new types of seeds that yield more than 30 tonnes of fresh fruit bunches per hectare per year in addition to extending their economic life to more than 30 years.