Cottonseed oil and fractions market in India

Earlier Report Observations

Market volume for cottonseed oil in India rose from 1 126 thousand tons in 2018 to 1 273 thousand tons in 2019, driven by government minimum support prices and rising consumer health awareness that expanded demand from processed food industries. Entry of new players with fortified products further supported growth. However, volatility in raw material prices hindered expansion in 2020, reducing volume to 1 223 thousand tons. The market then contracted to 1 086 thousand tons in 2021 as COVID-19 pandemic-related supply chain disruptions limited the availability of raw cotton for oil production.

A recovery followed in 2022, with market volume reaching 1 169 thousand tons, supported by increased demand from food and cosmetics sectors due to rising disposable incomes and health awareness. Major domestic companies expanded production capacities and introduced new product variants. This upward trend reversed in 2023 when heat waves and climatic factors reduced cottonseed crops, leading to raw material shortages. Government procurement through the Cotton Corporation of India at support prices further tightened supply, pulling market volume down to 1 127 thousand tons.

Production cottonseed oil and fractions in India

In kind, 2017-2020, K t

India was one of the world's top producers of cottonseed oil and fractions from 2017 to 2020, ranking second globally by production volume during this period.

Top producers of cottonseed oil and fractions, 2017-2020

World map of production of cottonseed oil and fractions, 2017-2020

In 2020, India produced 1 221 thousand tonnes of cottonseed oil and fractions, marking a moderate decline of 3.9% compared to the previous year. Over the 2017-2020 period, production decreased by 3.4%, with a compound annual growth rate of -1.1%. The lowest production level was recorded in 2018 at 1 123 thousand tonnes, while the highest was in 2019 at 1 271 thousand tonnes. The most significant drop occurred in 2018 with an 11.2% decrease, whereas the largest increase was in 2019 with a 13.2% rise.

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

Exports cottonseed oil and fractions from India

Exports in kind, t

The data shows irregular changes, reflecting a volatile market environment. Exports reached their lowest point in 2019 at 17 tonnes and peaked in 2020 at 37 tonnes, representing a 2.2-fold increase between these years. In 2020, shipments of cottonseed oil and fractions from India abroad totaled 37 tonnes, up 118.7% from 2019. The largest decline was recorded in 2018 at 8.0%.

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

From 2017 to 2020, the geographical structure of India's exports in kind was highly diversified. Australia accounted for 15.8% of exports, the United States for 15.2%, and El Salvador for 11.6%, together making up 42.6% of total flows. The remaining 57.4% was distributed among numerous smaller partner countries.

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, K $ US

The data indicates irregular changes, pointing to a volatile market environment. Exports hit their lowest point in 2017 and peaked in 2020, with a 7.9-fold difference between these years. In 2020, foreign supplies of cottonseed oil and fractions from India reached 390 thousand US dollars, up 659.2% year-over-year. The largest decline was recorded in 2019 at 7.8%.

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

During 2017-2020, Spain was the leading destination for India's exports of cottonseed oil and fractions in value terms, accounting for 42.7% of the total. The United States followed with 9.6%, and El Salvador with 5.9%. Together, these three countries formed the main group of destinations, representing 58.2% of total export flows.

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

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

Imports cottonseed oil and fractions to India

Imports in kind, t

Volatility characterized the market behavior during these years. Imports reached their minimum in 2017 and peaked in 2018, with a top-to-bottom ratio of 866 times. In 2020, India imported 1 752 tonnes of cottonseed oil and fractions, down 7.6% year-over-year. The maximum value was recorded in 2018 at 3 022 tonnes. The largest decline occurred in 2019 with a 37.2% drop, while the largest increase was in 2018 with an 86,496.7% surge.

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

Over the 2017-2020 period, India's imports in kind of cottonseed oil and fractions were heavily concentrated, with Benin and the United States together accounting for 100.0% of total flows.

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, K $ US

Noticeable fluctuations marked market performance during this period. Imports reached their lowest point in 2017 and peaked in 2018, with an 18-fold difference between these years. In 2020, India imported 2 166 thousand US dollars worth of cottonseed oil and fractions, corresponding to a limited decrease of 8.4% year-over-year. The maximum value was recorded in 2018 at 2 833 thousand US dollars. The largest decline was in 2019 at 16.6%, while the largest increase was in 2018 with a 1,703.6% rise.

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

From 2017 to 2020, India's imports in value terms of cottonseed oil and fractions were heavily concentrated, with the United States and Benin together accounting for 99.2% of total flows.

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

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