Govt Notifies New Vegetable Oil Regulation Order to Enhance Transparency, Oversight

The government has notified a new framework for the edible oil industry, imposing stricter registration and reporting requirements on producers to enhance transparency and oversight, according to an official release.

The 2025 Vegetable Oil Products, Production and Availability (VOPPA) Regulation Order, notified on August 1 by the Ministry of Consumer Affairs, Food and Public Distribution, amends the Vegetable Oil Products Production and Availability (Regulation) Order, 2011, under Section 3 of the Essential Commodities Act, 1955.

Under the new framework, producers will face stricter registration and reporting requirements. They must apply for registration certificates through the Directorate of Sugar and Vegetable Oils in New Delhi, providing details such as factory location and production capacity as outlined in Schedule-I.

The amended order mandates monthly reports by the 15th of each month, detailing oil usage, production, sales and stocks to ensure better supply chain tracking and maintain availability of cooking oils at fair prices.

The amendment also strengthens enforcement mechanisms. The Director is empowered to inspect factories, demand information and seize stocks if false reporting is suspected. Non-compliance with orders is explicitly prohibited, with producers required to follow all directives.

These measures aim to prevent hoarding or misrepresentation and protect consumers from supply disruptions.

The amendment introduces clearer definitions for key terms including "Producer," "Vegetable Oil," and "Director (Directorate of Sugar and Vegetable Oils)," aligning them with the Essential Commodities Act, 1955, and the Collection of Statistics Act, 2008.

It removes outdated references like "de-oiled meal or edible flour" and scraps Schedule-III and Paragraph 13 to simplify regulations. The term "Clause" has been replaced with "paragraph" throughout, while "Chief Director" has been updated to "Director" for consistency.

Welcoming the move, the Indian Vegetable Producers' Association (IVPA) said a key concern flagged by the government is the lack of consistent and comprehensive data across the industry, which limits effective policymaking.

"The organised sector, which maintains robust compliance standards, is well-equipped to provide data under the amended framework. However, the challenge lies in the highly fragmented unorganised sector, which comprises thousands of small mills and processing units, making data collection more complex," IVPA said in a statement.

The association believes data quality and completeness will improve over time, supporting the shared objectives of policymakers, farmers, consumers and the industry.

The 2025 Amendment Order represents a step toward greater transparency and accountability in the vegetable oil industry through streamlined regulations and enhanced oversight to stabilise supply of this essential commodity.