Groundnut oil and fractions market in India

Earlier Report Observations

The Indian groundnut oil market saw a decline in production and domestic market volume from over 2 880 thousand tonnes in 2018 to around 2 154 thousand tonnes in 2020. This drop was primarily driven by supply chain disruptions during the COVID-19 pandemic, which affected processing and logistics. Concurrently, the period witnessed the emergence of cold-pressed and chemical-free groundnut oil segments, catering to growing consumer preference for natural and healthy oils.

From 2021, government initiatives to boost domestic oilseed production and reduce import dependence, coupled with the launch of new processing facilities by major companies, helped stabilize output. A sustained consumer shift towards natural and organic products supported a recovery in market volume to 2 256 thousand tonnes in 2022. Investments in processing technology to improve oil quality and shelf life further underpinned the market.

Exports grew significantly, from 21 thousand tonnes in 2019 to 212 thousand tonnes in 2024, driven by quality certifications and rising global demand for sustainable, chemical-free groundnut oil. However, Indian exporters faced stricter import regulations in destination countries, increasing compliance costs. In September 2024, the government raised import duties on edible oils, including groundnut oil, to stimulate domestic production, leading to retail price increases and influencing consumer behavior.

Production groundnut oil and fractions in India

In kind, 2017-2020, K t

India was the world's leading producer of groundnut oil and fractions from 2017 to 2020.

Top producers of groundnut oil and fractions, 2017-2020

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

India's production of groundnut oil and fractions declined for the second year in a row. In 2020, output stood at 2,323 thousand tonnes, marking a 17.9% decrease from the previous year. Between 2017 and 2020, production fell by 10%, which translates to an average annual decline of 3.4%. The peak was recorded in 2018 at 2,897 thousand tonnes, with the largest year-on-year increase of 12.2% also occurring that year.

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

In value, 2017-2020, M $ US

India's production value of groundnut oil and fractions rose for the second consecutive year. In 2020, it reached 4,202 million US dollars, up 3.0% from the previous year. From 2017 to 2020, production value grew by 16%, averaging an annual increase of 5.1%. The lowest value was in 2018 at 3,478 million US dollars, when it saw a 4.0% decline. The largest increase occurred in 2019, with a 17.3% rise.

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

Exports groundnut oil and fractions from India

Exports in kind, K t

India's exports of groundnut oil and fractions increased for the third straight year. In 2020, export volumes totaled 168.6 thousand tonnes, a staggering 696.1% jump compared to the previous year. Over the 2017-2020 period, exports surged by 1,161.8%, representing a compound annual growth rate of 132.8%.

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

From 2017 to 2020, India's exports of groundnut oil and fractions were heavily concentrated on China, which accounted for 94.2% of total export volumes.

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

India's export value of groundnut oil and fractions grew for the third year in a row. In 2020, exports reached 304.9 million US dollars, soaring by 898.0% year-on-year. Between 2017 and 2020, export value skyrocketed by 1,526.8%, with an average annual growth rate of 153.4%.

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

During 2017-2020, China was the dominant market for India's groundnut oil and fractions exports in value terms, making up 93.9% of total 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 groundnut oil and fractions to India

Imports in kind, K t

Import volumes showed irregular fluctuations, pointing to a volatile market. The lowest level was in 2019 at 0.0 thousand tonnes, with the highest in 2020, resulting in a 3.1-fold difference between these years. In 2020, imports rose to 0.0 thousand tonnes, a 209.3% increase from 2019. The largest decline occurred in 2019, dropping by 63.8%.

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

From 2017 to 2020, the United States and Germany were the main sources for India's imports of groundnut oil and fractions in volume terms, together representing 86.6% of total imports, while other countries accounted for 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

Import values exhibited erratic changes, reflecting market volatility. The low point was in 2017, with the high in 2019, showing a 4.7-fold variation. In 2020, imports amounted to 0.3 million US dollars, down 27.0% from 2019. The peak value was recorded in 2019 at 0.4 million US dollars, while the largest increase happened in 2018 with a 146.9% rise.

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

Between 2017 and 2020, India's imports of groundnut oil and fractions in value terms were highly concentrated on the United States, which held a 79.1% share of total imports, with other partners making up the rest.

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

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