The Indian government is set to introduce the 2025 Vegetable Oil Products, Production and Availability (VOPPA) Regulation Order next week, replacing the existing 2011 framework. This move aims to enhance transparency and oversight in the edible oil industry through mandatory digital reporting of production, sales, pricing, and stock data, enabling real-time market monitoring and improved regulatory compliance.
Food Secretary Sanjeev Chopra announced the forthcoming regulation during the Indian Vegetable Oil Producers’ Association (IVPA) Global Roundtable, emphasizing that the new framework will allow the ministry to better track production and pricing. “Right now we are groping in the dark because we are dependent on the association for the data,” he stated.
The VOPPA order will mandate industry stakeholders to report key metrics digitally, facilitating real-time tracking of production, pricing, and availability. This initiative is expected to improve compliance, market monitoring, and product integrity across the sector.
In addition to regulatory reforms, the government has implemented calibrated customs duty reductions on crude edible oils to cushion the impact of global fluctuations and ensure affordability. The authorities are conducting nationwide inspections and collaborating with industry associations to ensure that duty cuts are swiftly passed on to consumers, promoting fair price discovery across the supply chain.
While overall food inflation remains at its lowest since 2021, edible oil has experienced 20-30% annual inflation, with groundnut oil being an exception. Mustard oil prices remain firm; however, government agencies like Nafed have a stock of 7 lakh tonnes of mustard seed, which should help ease pressure on rates.
The government is also focusing on achieving self-sufficiency in domestic oilseeds and edible oil production, acknowledging significant challenges ahead. Efforts are being made to invest in research and development, infrastructure, and modern agricultural practices to boost domestic production.
The new VOPPA regulation is anticipated to bring about a significant transformation in the vegetable oil industry, promoting transparency, efficiency, and self-reliance.
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