Top Export Markets for Groundnut Oil & Mustard Oil

Key Highlights

• China dominates India's crude groundnut oil exports.
• India exported $339.05 million of crude groundnut oil in 2024.
• China accounted for over 98% of India's crude groundnut oil exports.
• Mustard oil exports are smaller but reach more diverse markets.
• The US, Australia and Canada are important mustard-oil destinations.
• Gulf markets also offer opportunities for Indian edible oil exporters.
• Mustard oil trade data includes broader rape and colza oil classifications.
• Exporters should check current DGFT rules before quoting buyers.

Introduction:

For businesses looking to export groundnut oil in bulk or export mustard oil in bulk, the market map looks quite different from what a general edible-oil ranking might suggest.

Groundnut oil already has a sizable bulk trade, and India's position in that business is unusually concentrated. In 2024, India exported $339.05 million worth of crude groundnut oil, of which $334.27 million went to China. That is more than 98% of India's crude groundnut oil exports by value.

Mustard oil is a much smaller export category for India, but the top mustard oil importers are more spread out. The United States, Malaysia, Australia, the UAE and Canada were among the leading destinations for India's non-crude rape, colza or mustard oil exports in 2024.

There is another point worth clearing up at the beginning. International trade statistics often group mustard oil with rape and colza oil under the same HS categories. The figures below therefore use the relevant WITS trade classifications rather than treating every tonne under those codes as pure mustard oil.

China is the big story in India's groundnut oil exports

If there is one country that stands out among the top groundnut oil buyers from India, it is China.

WITS records India's crude groundnut oil exports at $339.05 million in 2024, with shipments of about 208.09 million kg. China alone accounted for $334.27 million and 205.64 million kg. Vietnam was a distant second at $2.96 million, followed by the United States at $1.28 million.

That concentration is striking.

For an Indian supplier dealing in crude groundnut oil, China is not simply one market among several. It is by far the dominant destination in the existing export business.

The wider Chinese market also backs this up. China imported $436.44 million worth of crude groundnut oil in 2024. This was almost equivalent to about 254.55 million kg and it the world's largest importer in this category. The European Union was next at $84.56 million, followed by the United States at $68.92 million.

India's position in China is therefore quite substantial. The country is already supplying most of India's crude groundnut oil exports, while China itself is the largest market globally for the product.

Top Groundnut Oil Importers in the World

Source: WITS, 2024; HS 150810, crude groundnut oil.

The United States and Europe are important groundnut oil markets too

China may dominate India's current trade, but it is not the only market worth watching.

The United States imported $68.92 million worth of crude groundnut oil in 2024. Italy imported $48.03 million, while the Netherlands brought in $17.74 million. France was at $10.28 million and Switzerland at $8.04 million.

The picture changes somewhat when we move from crude to non-crude groundnut oil and fractions.

Global imports of this category were led by Hong Kong at $19.50 million, France at $12.67 million, the United Kingdom at $11.38 million, Canada at $10.82 million and the Netherlands at $7.77 million. Germany followed at $7.47 million.

India is already present in several of these markets. Its non-crude groundnut oil exports in 2024 were worth $10.72 million, with the United States taking $3.16 million, Vietnam $1.96 million, Singapore $989,000, the UAE $918,000 and Australia $735,000.

The distinction between crude and non-crude oil matters for exporters. A company selling bulk crude oil will be looking at a rather different buyer base from a supplier offering refined or otherwise processed groundnut oil.

India has room to diversify its groundnut oil exports

The concentration in China is commercially useful, but it also tells exporters something else.

There is already a proven large-scale market for Indian groundnut oil. The next question is whether suppliers can build additional destinations around it.

The United States is one possibility. India's non-crude groundnut oil exports to the US were worth $3.16 million in India's own export data, while US importer-side data puts imports from India at $4.09 million.

Singapore, Australia, Kuwait, Canada, South Africa and the UAE are also buying Indian non-crude groundnut oil.

These are not China-sized markets, but that is not necessarily the point. A supplier looking to export groundnut oil in bulk can build a more diversified portfolio by developing several destinations instead of depending almost entirely on one.

For businesses already handling large volumes, this can become an important commercial consideration. China provides the scale; other markets can provide diversification and, depending on the product specification, potentially different opportunities.

Mustard oil has a very different export pattern

Mustard oil is where the international trade picture becomes more complicated.

WITS classifies much of the trade under “rape, colza or mustard oil,” which includes crude and non-crude products. Global demand in this broader category is enormous. In 2024, China imported $1.86 billion of crude rape, colza or mustard oil and fractions, while the United States imported $1.63 billion. The Netherlands, Norway and Belgium were also major buyers.

But those numbers should not be read as pure mustard-oil demand. Much of this trade is rapeseed or canola oil.

For Indian mustard oil exporters, the more relevant question is where Indian-origin shipments are actually going.

India exported $6.09 million worth of non-crude rape, colza or mustard oil and fractions in 2024. The United States was the largest destination at $1.09 million, followed by Malaysia at $813,610, Australia at $630,970, the UAE at $530,840 and Canada at $520,730. New Zealand, Kuwait and the UK were also among the more significant destinations.

The trade is much more spread out than India's crude groundnut oil business.

Top Mustard Oil Importers in the World

Source: WITS, 2024; HS 151490, “rape, colza or mustard oil (excluding crude) and fractions.” This classification includes rapeseed and colza oil, so the figures should not be interpreted as pure mustard-oil imports.

The United States is one of the top mustard oil buyers from India

The US is particularly interesting because it appears prominently in both the overall international market and India's own export figures.

India's 2024 exports of non-crude rape, colza or mustard oil to the United States were worth $1.09 million. Australia followed at $630,970 and Canada at $520,730.

Importer-side WITS data gives an even broader picture of where Indian mustard/rapeseed oil products are finding buyers. Australia imported $2.42 million from India, Canada $1.80 million, the UK $976,690, the European Union $715,190 and New Zealand $659,330 in 2024. Qatar was another notable destination at $512,310.

The difference between exporter and importer figures is worth keeping in mind when comparing the databases. Trade values reported by the two sides do not always match because of reporting periods, valuation and other statistical differences.

Still, the direction of the trade is clear enough: Indian oil products are reaching a fairly broad group of overseas markets.

Australia, Canada and the UK are worth watching

Australia is one of the more interesting markets for Indian mustard oil.

According to WITS importer-side data, Australia brought in $2.42 million of rape, colza or mustard oil products from India in 2024. Canada followed with $1.80 million. The UK imported $976,690 and New Zealand $659,330.

These markets also have sizeable South Asian consumer communities, which is relevant for mustard oil in particular. The product is used not only as a cooking oil but also in traditional food preparation, regional cuisines and household applications.

That gives Indian suppliers a different kind of opportunity from the enormous commodity markets buying bulk rapeseed or canola oil.

For businesses trying to export mustard oil in bulk, understanding which segment of the market they are actually targeting becomes important. A bulk commodity buyer, an ethnic food distributor and an FMCG importer may all be buying “mustard oil,” but their specifications, packaging expectations and volumes can be very different.

The Gulf is another established destination

The UAE, Qatar, Kuwait and Saudi Arabia appear across India's mustard-oil export destinations.

India exported $530,840 worth of non-crude rape, colza or mustard oil products to the UAE in 2024, $403,370 to Kuwait and $281,080 to Qatar.

India also exported crude products under the broader category to Canada, the EU, Qatar, Saudi Arabia, Italy, the United States and Kuwait. Canada was the largest of these destinations at $960,120, followed by the EU at $636,830 and Qatar at $363,880.

The Gulf therefore remains useful for exporters, particularly those already supplying Indian food products and looking to add edible oils to their portfolio.

Where the two oils stand today

The contrast between the two products is quite revealing.

Source: WITS, 2024. Mustard figures use the relevant HS classification covering rape, colza or mustard oil and fractions.

Groundnut oil has a very clear bulk-market story. India is one of the world's leading exporters of crude groundnut oil, and China absorbs almost all of India's current export volume.

Mustard oil is different. India's export values are much smaller, and the destinations are more dispersed. That makes the product interesting for niche and diaspora-driven markets, but it should not be confused with the much larger global rapeseed and canola trade captured under the same broad HS category.

One important point for exporters: check India's export policy

There is also a regulatory issue that businesses planning to export mustard oil in bulk should check before building a commercial plan around a destination.

India's export policy has historically treated mustard oil differently from most other edible oils. DGFT policy documents specify that mustard oil exports are permitted in branded consumer packs of up to 5 kg, subject to the applicable Minimum Export Price; the policy treatment is different from the general export rules for other edible oils. Organic edible oils have separate exemptions under the policy framework.

This matters because a large overseas market for mustard or rapeseed oil does not automatically mean an Indian supplier can ship the product in whatever bulk format the buyer requests.

Before quoting a buyer, an exporter should check the current DGFT notification and the exact ITC-HS classification applicable to the product. Export rules can change, and the commercial terms should be built around the policy in force at the time of shipment.

Groundnut oil also needs to be classified correctly between crude and non-crude products, because the trade data and the commercial buyer base can be quite different between the two.

Finding the right buyers for groundnut and mustard oil

The trade numbers point to two different approaches.

For groundnut oil, China is the obvious large-volume market. The United States, Vietnam, Singapore, Australia, Canada, the UAE and other destinations can then be considered for diversification, particularly for non-crude oil.

For mustard oil, the market is more fragmented. The United States, Australia, Canada, the UK, New Zealand and Gulf countries already have established trade with India, although the volumes are much smaller.

The buyer itself also matters. A bulk edible-oil importer will want consistent volumes and specifications. A food distributor may be more interested in a particular origin, packaging format or consumer segment. And an Indian-food distributor overseas may already have a customer base that makes mustard oil easier to place.

That is where having a clear export offer becomes important: oil type, crude or refined status, origin, quality parameters, available volume, packaging options and the markets in which the supplier can actually deliver.

The opportunity is different for each oil

Groundnut oil already has a strong export story from India, particularly in crude form. The $339.05 million export figure for 2024 is substantial, and China's $334.27 million share leaves little doubt about where the current centre of gravity lies.

Mustard oil is a smaller export business, but it has a broader collection of overseas destinations. The United States, Australia, Canada, Malaysia, the UAE, the UK and several Gulf markets are already buying Indian products under the relevant trade classifications.

For exporters, the opportunity is therefore not identical.

If the objective is to export groundnut oil in bulk, China is the market that deserves immediate attention, while other destinations can help build a wider customer base.

If the plan is to export mustard oil in bulk then the first step should be checking the current Indian export policy and then identifying markets where the product already has a natural customer base.

The numbers definitely point in different directions, but they do tell the same broader story about Indian edible oils: the overseas market is already there. The real work is finding the right buyer, product specification and trade route that fit each oil.

Disclaimer: The trade figures presented in this article are based on WITS/UN Comtrade data and the relevant Harmonized System (HS) classifications. In the case of mustard oil, international trade statistics are reported under broader HS categories covering “rape, colza or mustard oil,” which may include rapeseed and colza/canola oil in addition to mustard oil. Therefore, the import values cited for individual countries should not be interpreted as representing mustard-oil demand alone. Trade values may also vary between exporter- and importer-reported data due to differences in reporting periods, valuation and statistical methodology. Exporters should verify the latest DGFT export policy, applicable ITC-HS classification, destination-country import regulations and product-specific requirements before entering into commercial transactions.