Plan to Make Registration Mandatory for Edible Oil Units

09-Jul-2025 11:50 AM

New Delhi. In response to rising edible oil prices, the Central Government has prepared a new draft of the Vegetable Oil and Products, Production and Availability Order (WOPPA) 2011, proposing significant changes aimed at tightening regulation.

The draft seeks to regulate all manufacturers and sellers of vegetable oils and related products, including solvent-extracted oil produced using modern methods.

The industry and trade sector has been asked to submit their feedback and suggestions by 11 July to help finalize the amendments.

A key provision in the revised draft mandates compulsory registration for all edible oil plants. Units failing to register within the stipulated time may face penalties.

This proposal has raised concern in parts of the edible oil industry, which fears the return of excessive regulations and a 'license raj'-like environment.

The revised draft grants the Directorate of Sugar and Vanaspati Oils, under the Union Food Ministry, the authority to determine the maximum and minimum limits for blending different edible oils in any vegetable oil product. This is intended to curb arbitrary practices by processing units.

Additionally, the draft includes a provision requiring every vegetable oil manufacturer to submit a regular (monthly or fortnightly) report to the government.

This report must detail the quantity of edible oil received by processing units, the amount used, and an account of their current stock.

Units must also provide a breakdown of the production and marketing of solvent-extracted oil varieties for the previous month.

Currently, over 15,000 oil mills and more than 250 vegetable oil processing units operate in the country. Many of these units may face operational challenges if the proposed regulations are implemented in their current form.