A handful of countries feed the whole world’s cooking oil. Indonesia and Malaysia alone supply most of the planet’s palm oil. Argentina and Brazil crush most of its soybean oil. Russia and Ukraine press most of its sunflower oil. This article covers who produces what, where it goes, and why India buys so much of it.
MCQ QuestionsMust Know.
Three Oils, Three Regions.
Palm Oil: Indonesia and Malaysia.
- World’s Top Oil. Palm oil is the world’s most-produced and most-consumed vegetable oil. Global output hit a record 80.4 million tonnes in 2025-26.
- Indonesia. The largest producer, with output of about 47.5 million tonnes.
- Malaysia. The second-largest, with about 19.2 million tonnes. Together, Indonesia and Malaysia supply roughly 85% of the world’s palm oil.
Soybean Oil and Sunflower Oil: The Other Two Belts.
- Soybean Oil. World output is projected to grow to about 70.8 million tonnes in 2025-26, a fresh record. China, the United States, Brazil, and Argentina are the leading producers.
- Sunflower Oil. Global output stood at about 21.7 million tonnes in 2024-25. Russia and Ukraine are the world’s leading sunflower-oil producers, along with Argentina, Turkey, and Hungary.
- India’s Role. India does not lead in producing any of these three oils. It leads in buying them — India is the world’s largest importer of vegetable oils. See IndEco0275 — Edible Oil Production in India for how much it buys and from where.
Good to Know.
Where the Oil Flows.
Trade Routes and Regulators.
- Palm Oil Buyers. Indonesia and Malaysia export palm oil mainly to India, China, Pakistan, and the European Union.
- Soy Oil Buyers. Argentina and Brazil export soybean oil mainly to India and China.
- Sunflower Oil Buyers. Russia and Ukraine export sunflower oil mainly to India, the EU, China, and the Middle East.
- Regulators. Malaysia’s palm sector is overseen by the Malaysian Palm Oil Board (MPOB). Indonesia’s industry body is GAPKI (the Indonesian Palm Oil Association).
- Rapeseed/Canola. The European Union and Canada are major producers of rapeseed (canola) oil, a category that overlaps with India’s own mustard-rapeseed crop.
Indonesia’s Export Policy Moves Global Prices.
- Export Levy. Indonesia uses an export levy and reference-price system on palm oil, adjusted to manage domestic supply and state revenue.
- 2022 Export Ban. Indonesia briefly banned palm oil exports in April-May 2022 to control a domestic cooking-oil shortage. The ban sent global and Indian prices sharply higher within weeks.
- Why It Matters for India. Because India buys so much palm oil from Indonesia, an Indonesian policy shift reaches Indian kitchens almost immediately.
Test Yourself.
Great to Know.
Beyond the Numbers.
Deforestation and Certification.
- Land-Use Concern. Palm oil expansion in Indonesia and Malaysia has been linked to tropical deforestation and peatland loss.
- RSPO. The Roundtable on Sustainable Palm Oil (RSPO) certifies growers and buyers who meet sustainability standards, as an industry response to this concern.
War in the Sunflower Belt.
- Russia and Ukraine Together. The two countries together account for the majority of world sunflower oil and sunflower-seed production.
- 2022 Disruption. Russia’s invasion of Ukraine in 2022 disrupted Black Sea shipping and cut sunflower-oil exports, pushing global buyers, including India, toward more palm and soybean oil.
- A Record Year Regardless. Despite that disruption, global vegetable-oil production has kept growing. Palm and soybean oil are leading it to fresh records through 2025-26.
Current Affairs.
Latest on the Global Market.
2025-26: A Record Year for Vegetable Oils.
- [Data] Global palm oil production is projected at a record 80.4 million tonnes for 2025-26. World soybean oil output is projected to grow to about 70.8 million tonnes, also a fresh record. So what: rising global supply has helped ease international prices. That fed into India’s own May 2025 duty cut. (Source: Renewable Carbon News, citing USDA/Oil World data)
Related reading: for the country that buys more of this oil than anyone else, see IndEco0275 — Edible Oil Production in India. For India’s own scheme to grow more of its own oilseeds, see IndEco0068 — National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds).
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