Global demand for RBD (Refined, Bleached, and Deodorized) Palm Olein is surging, and at the heart of it are three powerhouses: India, China, and the MENA region. July 2025 trade data shows these regions are driving the momentum behind price hikes, especially impacting exports from Indonesia and Malaysia, the world’s top suppliers.

 

India’s Import Rollercoaster: Policy Shifts and Rising Domestic Demand

India, a long-time major buyer of palm oil, has seen volatile import volumes in 2025. In May, imports of RBD Palm Olein from Indonesia dropped to 43,669 tons, down from 62,962 tons in April, and sharply lower than 180,446 tons in May 2024. For the January–May 2025 period, total imports stood at 299,995 tons, less than half of last year’s 670,079 tons.

 

This decline reflects India’s shift toward diversified edible oil sourcing and a mid-year reduction in Basic Customs Duty on crude palm oil, aimed at stabilizing local supply and costs. India’s domestic demand is clearly strong. By July 1, 2025, total vegetable oil stocks rose to 1.568 million tons, up from 1.33 million tons a month earlier—suggesting anticipation of seasonal demand or further market adjustments. Meanwhile, prices remain steep: Indian buyers are paying up to US$1627 per metric ton, well above levels in Malaysia and Indonesia, showing continued pressure from domestic processing costs and consumer demand.

 

 

Although recent July 2025 figures for China are limited, its role as a key market remains unchanged. Imports of RBD Palm Olein continue to serve both food needs and industrial uses like biofuel production.

 

China’s influence on global prices is significant. Its purchasing decisions—often tied to internal policy or supply chain adjustments—create ripple effects in exporting countries. With its massive consumption base and growing industrial applications, China remains a central player shaping palm oil dynamics.

 

Countries across the Middle East and North Africa (MENA) are steadily increasing their palm oil imports, particularly RBD Palm Olein, driven by population growth, higher incomes, and cultural preferences for palm-based cooking oils. While exact numbers from July 2025 are limited, trade reports suggest a consistent uptick in volumes, with palm oil offering a cost-effective alternative to other vegetable oils that are often scarce or expensive in the region.

 

Indonesia and Malaysia: Leading the Supply, Influencing the Price

Exporters like Indonesia and Malaysia continue to dominate global RBD Palm Olein trade. Indonesia alone plans to produce 47 million tons of palm oil this year, targeting 25 million tons for export. However, policy shifts are starting to impact the market. In May 2025, Indonesia increased export duties on crude palm oil (CPO) from 7.5% to 10% to fund domestic biofuel programs and replanting—moves that indirectly affect RBD Palm Olein pricing.

 

With supply growth lagging behind demand, prices are climbing. In July 2025, the CPO reference price reached $877.89 per metric ton, a 2.51% increase from June. As RBD Palm Olein is refined from CPO, this rise is reflected downstream. Malaysian RBD Palm Olein prices are currently around $1150/MT, with Indonesian offers slightly lower but still trending above global averages.