Government to Introduce New Vegetable Oil Regulation to Improve Transparency and Tracking

The Indian government will soon introduce a new regulation to better manage and monitor the edible oil sector. Called the 2025 Vegetable Oil Products, Production and Availability (VOPPA) Regulation Order, this new rule will replace the older 2011 version. It will be officially announced next week, according to Food Secretary Sanjeev Chopra.

What Will Change?

Under the new VOPPA order, all edible oil producers will be required to report their production, pricing, sales, and stock details through a digital platform. This data will be made available in real-time, enabling the government and industry stakeholders to monitor market conditions more effectively. The system is designed to prevent misuse and unexpected price spikes by ensuring transparency.

Food Secretary Sanjeev Chopra noted that the government currently relies on data provided by industry associations, which is not ideal for accurate tracking. He stated that the new system would provide precise and immediate information, improving oversight and decision-making.

Tackling Price Hikes

Even though food prices have gone down in general, edible oils are still very expensive, with prices rising 20–30% each year, except for groundnut oil. Mustard oil prices are also high. To help control this, the government has kept 7 lakh tonnes of mustard seed in storage, which it can release if needed to manage prices. Chopra added that import duties on some crude edible oils have already been reduced to make them cheaper for consumers.

Domestic Production Challenges

India still depends heavily on imports because it doesn’t grow enough oilseeds like soybean, sunflower, and mustard. The reason? The average yield from Indian farms is much lower than the global average. Improving this situation will need big steps: more research, better seeds, new technology, and farmer support. The government is promoting oilseed farming through programs like the National Mission on Edible Oils-Oilseeds and Pradhan Mantri Dhan-Dhaanya Krishi Yojana. However, Chopra is hopeful. He said India has developed new seed varieties with global potential, and efforts are on to make them more widely available to farmers.

What Industry Leaders Say

At the IVPA Global Roundtable where these announcements were made, Kevin Roepke from the US Soybean Export Council said that no country can be fully self-sufficient in every crop, and the US could help India by exporting more soybean oil. IVPA President Sudhakar Desai shared that India’s edible oil imports dropped by 8% in the last six months, but might rise again due to lower international prices. He also warned that mustard prices are still high because of lower crop estimates and suggested the government may need to release its stock slowly to balance the market.

Future of Edible Oils

Experts at the event, including leaders from Godrej and ITC, agreed that the edible oil market is constantly changing due to global prices, supply-demand shifts, and political issues. They stressed that having accurate data will help in making better decisions for both the industry and consumers.

The new VOPPA rule is expected to bring more transparency, better pricing, and stronger market monitoring, ensuring fair practices across the edible oil supply chain.

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