India is set to solidify its position as one of the world’s largest food commodity consumption markets in 2025, with palm oil and soybean oil industries eyeing the country as a critical growth hub.
India surpassed China as the world’s most populous nation in 2023 and is now the fifth-largest global economy. Prime Minister Narendra Modi’s third consecutive term is expected to drive agricultural reforms and economic growth.
India’s strategic focus on self-reliance and modernization in agriculture is leading to self-reliance on imports, urbanization and population growth are driving an unprecedented demand for food commodities.
China, previously the largest importer of commodities like palm oil and soybeans, is experiencing an economic slowdown and focusing on domestic self-sufficiency amid geopolitical tensions. India’s demand will rise sharply in 2025 as urbanization accelerates.
In India, Soybean production for the 2024/2025 season is projected to increase by 9%, supported by strong yields in the United States, Brazil, and Argentina.
While palm oil production faces challenges such as aging plantations and slow replanting rates in Malaysia and Indonesia. Palm oil remains irreplaceable in global food supply chains. Replacing it would require over 140 million hectares of alternative oil crops — a practically unfeasible scenario.
Despite these hurdles, both palm oil and soybean oil sectors see India as a cornerstone market for growth in 2025, driven by rising consumption and an expanding urban middle class. The edible oil market in India is set to play a pivotal role in global food security in the coming years.