India tightens control over vegetable oil market

The Indian government will introduce a new regulation next week to enhance oversight and transparency in the vegetable oil sector, Food Secretary Sanjeev Chopra announced. The 2025 Vegetable Oil Products, Production and Availability (VOPPA) Regulation Order will replace the existing 2011 framework, mandating digital reporting of production, sales, pricing, and stock data. This will enable real-time market monitoring and ensure better regulatory compliance.

Chopra stated that the new order addresses the current reliance on industry associations for data, which limits visibility. “Right now, we are groping in the dark because we depend on associations for data,” he said during the IVPA Global Roundtable, organized by the Indian Vegetable Oil Producers’ Association. The VOPPA framework will improve tracking of production, pricing, and availability, benefiting both the government and industry stakeholders by enhancing transparency and product integrity.

Despite a general easing of food inflation, edible oils remain a concern, with annual price increases of 20-30% for most oils, except groundnut oil. The government has reduced import duties on crude edible oils to alleviate consumer price pressures and is conducting inspections to ensure these cuts reach end consumers. Additionally, to stabilize mustard oil prices, the government holds 7 lakh tonnes of mustard seed in buffer stocks, which can be released as needed.

Achieving self-sufficiency in oilseed production remains a significant challenge for India. Chopra noted that the average yield of soybean, sunflower, and mustard crops is well below global standards. Improving output requires substantial investment in research, infrastructure, and modern agricultural practices. However, new oilseed varieties with global genetic potential are being promoted through schemes like the Pradhan Mantri Dhan-Dhaanya Krishi Yojana and the National Mission on Edible Oils-Oilseeds.

At the roundtable, IVPA President Sudhakar Desai highlighted an 8% drop in India’s edible oil imports over the past six months, though imports are now rebounding due to softer global prices. He noted that mustard markets remain firm amid crop speculation, suggesting a need for calibrated releases of government stocks. Desai emphasized that evolving supply-demand dynamics, price volatility, and geopolitical tensions make data-driven dialogue critical for the stability of the global vegetable oil sector.

Tags: India, edible oils