Coconut, palm kernel or babassu oil and fractions market in India

Earlier Report Observations

From 2018 to 2020, India's market for coconut, palm kernel or babassu oil fluctuated in volume, reaching a peak of 743 thousand tons in 2019. Government schemes supporting the expansion of coconut cultivation area and improving productivity through quality planting material and technological demonstrations helped maintain domestic production around 595 thousand tons.

After 2020, the market volume declined, falling to 590 thousand tons in 2022 before recovering to 653 thousand tons in 2023. Production experienced a slight decrease during this period despite continued financial assistance to farmers for area expansion.

By 2024, regulatory changes including increased import duties on edible oils and the launch of the National Mission on Edible Oils aimed at boosting oilseed production introduced new market conditions. Adverse weather factors like droughts in key coconut-growing regions and a shift away from palm oil toward coconut oil in the salty snacks sector due to health concerns also influenced market dynamics.

Production coconut, palm kernel or babassu oil and fractions in India

In kind, 2017-2020, K t

From 2017 to 2020, India held the fourth position globally in the production of coconut, palm kernel, or babassu oil and fractions.

Top producers of coconut, palm kernel or babassu oil and fractions, 2017-2020

World map of production of coconut, palm kernel or babassu oil and fractions, 2017-2020

In 2020, India produced 595.0 K t of coconut, palm kernel, or babassu oil and fractions, showing no significant change compared to the previous year. The lowest production level was recorded in 2018 at 590.0 K t. The largest decline occurred in 2018, with a drop of 1.8%, while the largest increase was seen in 2019, rising by 0.8%.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of coconut, palm kernel, or babassu oil and fractions in India was valued at 1 634 M $ US, marking a moderate year-over-year increase of 9.9%. Over the period from 2017 to 2020, production grew by 9.2%, with a compound annual growth rate (CAGR) of 3.0%. The minimum value was recorded in 2019 at 1 486 M $ US, and the maximum value was in 2018 at 1 834 M $ US. The largest decline took place in 2019, falling by 18.9%, while the largest increase occurred in 2018, rising by 22.5%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports coconut, palm kernel or babassu oil and fractions from India

Exports in kind, K t

Coconut, palm kernel, or babassu oil and fractions exports from India increased for the second consecutive year. In 2020, the export volume totaled 11.2 K t, reflecting a significant advance of 39.8% compared to 2019. However, between 2017 and 2020, overall exports decreased by 5%, equating to an annualized decline of 1.7%. The lowest export volume was recorded in 2018 at 6.9 K t, with the largest decline that year at 41.7%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

From 2017 to 2020, the United Arab Emirates (accounting for 34.0% of exports in kind), Saudi Arabia (9.4%), and Vietnam (9.4%) led the structure of exports in kind. Together, these three countries represented 52.8% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

After a two-year decline, the exported volumes of coconut, palm kernel, or babassu oil and fractions from India increased. In 2020, India exported 30.7 M $ US worth of these products, corresponding to a substantial year-over-year increase of 53.7%. Over the period from 2017 to 2020, exports grew by 4.8%, with a compound annual growth rate (CAGR) of 1.6%. The minimum value was recorded in 2019 at 20.0 M $ US, and the largest decline occurred in 2018, falling by 27.2%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

The market base for exports in value terms from 2017 to 2020 was broad. The United Arab Emirates (32.4% of exports in value terms), Saudi Arabia (9.1%), and Vietnam (7.0%) jointly accounted for 48.5% of total flows, while the remaining 51.5% was distributed among numerous other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports coconut, palm kernel or babassu oil and fractions to India

Imports in kind, K t

After a two-year gain, coconut, palm kernel, or babassu oil and fractions imports into India declined. In 2020, India imported a total of 124.5 K t of these products, amounting to a solid year-over-year decline of 20.3%. Between 2017 and 2020, imports increased by 32.1%, equating to an annualized growth rate of 9.7%. The maximum import volume was recorded in 2019 at 155.9 K t, and the largest increase occurred in 2018, rising by 34.1%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, Indonesia and Malaysia consistently accounted for 96.6% of total imports in kind, indicating a high degree of concentration in the import market, with a long tail of smaller markets making up the remainder.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

Coconut, palm kernel, or babassu oil and fractions deliveries to India declined for the second consecutive year. In 2020, the import volume reached 103.0 M $ US, amounting to a moderate decline of 3.2% compared to the previous year. Between 2017 and 2020, imports decreased by 14.5%, equating to an annualized decline of 5.1%. The maximum value was recorded in 2018 at 127.3 M $ US. The largest decline occurred in 2019, falling by 16.4%, while the largest increase was in 2018, rising by 5.8%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Throughout 2017 to 2020, Indonesia and Malaysia remained the principal sources for imports in value terms, jointly taking 96.2% of total flows. Other trading partners each accounted for significantly smaller shares.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020