New Vegetable Oil Regulation Order Introduced to Enhance Transparency and Oversight in Edible Oil Industry

The government has introduced a new framework for the edible oil sector, aiming to improve transparency and oversight. This framework imposes stricter registration and reporting requirements on producers. The Ministry of Consumer Affairs, Food and Public Distribution announced the 2025 Vegetable Oil Products, Production and Availability (VOPPA) Regulation Order on August 1. It amends the 2011 order under the Essential Commodities Act, 1955.

Producers are now required to apply for registration certificates through the Directorate of Sugar and Vegetable Oils in New Delhi. They must provide details such as factory location and production capacity, as specified in Schedule-I. Monthly reports must be submitted by the 15th of each month, detailing oil usage, production, sales, and stocks. This aims to ensure better tracking of the supply chain and maintain fair prices for cooking oils.

Enhanced Oversight and Compliance

The amendment strengthens enforcement mechanisms by empowering the Director to inspect factories, demand information, and seize stocks if false reporting is suspected. Producers are prohibited from non-compliance with orders and must adhere to all directives. These measures aim to prevent hoarding or misrepresentation, protecting consumers from supply disruptions.

Key terms such as Producer, Vegetable Oil, and Director have been redefined to align with the Essential Commodities Act, 1955, and the Collection of Statistics Act, 2008. Outdated references like de-oiled meal or edible flour have been removed. Schedule-III and Paragraph 13 have been scrapped to simplify regulations. The term Clause has been replaced with paragraph throughout, while Chief Director has been updated to Director for consistency.

Industry Response

The Indian Vegetable Producers Association (IVPA) welcomed the move, highlighting a key concern raised by the government: the lack of consistent and comprehensive data across the industry limits effective policymaking. "The organised sector is well-equipped to provide data under the amended framework," IVPA stated. However, they noted challenges in the fragmented unorganised sector with numerous small mills complicating data collection.

The association believes that data quality and completeness will improve over time. This will support shared objectives among policymakers, farmers, consumers, and the industry. The 2025 Amendment Order represents progress towards greater transparency and accountability in the vegetable oil industry through streamlined regulations and enhanced oversight.

With inputs from PTI