HS Code:
Palm oil and its fractions, whether or not refined, but not chemically modified (HS Code: 1511), is a major edible vegetable oil derived from the fruit of oil palm trees. It is widely used in food products, cosmetics, and biofuels due to its versatility, high yield, and cost-effectiveness. This category includes crude palm oil, refined palm oil, and fractions like palm olein and palm stearin, which are not chemically altered during processing. Palm oil is a critical commodity in global trade, often linked to environmental and sustainability concerns such as deforestation and biodiversity loss.
Total Trade Volume
Approximately 75 million metric tons
Data from 2022
Source
United Nations Comtrade Database, USDA Foreign Agricultural Service
48 million metric tons
64% of global exports of total trade
Increasing
18 million metric tons
24% of global exports of total trade
Stable
3 million metric tons
4% of global exports of total trade
Increasing
1.5 million metric tons
2% of global exports of total trade
Increasing
1 million metric tons
1.3% of global exports of total trade
Stable
Average Rate
8-12% ad valorem
Highest Rate
Up to 40% (in certain protective markets like India, depending on domestic policies)
Lowest Rate
0-2% (under free trade agreements such as ASEAN or EU-Indonesia agreements)
Growing demand in Asia
Increased consumption in countries like India and China for cooking oil and processed foods drives export growth from Indonesia and Malaysia.
2022
Sustainability push
Rising demand for certified sustainable palm oil in Europe and North America due to environmental regulations and consumer awareness.
2021-2023
Biofuel applications
Expanding use of palm oil in biodiesel production, especially in Indonesia and the EU, boosts trade but raises concerns over food security.
2020-2022
The EU implemented stricter regulations on palm oil imports, requiring proof that products are not linked to deforestation, effective from late 2024.
June 2023
Potential reduction in EU market access for non-compliant producers; increased costs for certification and compliance.
Indonesia revised its export levy structure for palm oil to fund domestic biodiesel programs and stabilize prices, impacting global supply dynamics.
July 2022
Temporary supply constraints and price volatility in international markets.
India increased tariffs on refined palm oil imports to support domestic refining industries and reduce dependency on foreign refined products.
March 2023
Shift in demand toward crude palm oil imports, benefiting exporters of unrefined products.