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Traders oppose changes to VOPPA requiring all oil units to register
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Wednesday, 16 July, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Union Government has proposed changes in the Vegetable Oil Products, Production and Availability (Regulation) Order, 2011 (VOPPA), wherein the edible oil units will be required to register.
According to the changes proposed by the Ministry of Consumer Affairs, Food and Public Distribution, on and from the date of commencement of this order, a producer who intends to produce, stock for sale or offer for sale vegetable oil, vegetable oil product, solvent extracted oil, shall make an application to the Director, DSVO as specified in the Schedule- I, and obtain a registration certificate as specified in Schedule (I) (of the order).
Edible oil traders, however, opposed the move and registered strong opinions against the move.
It appears that amidst the increased prices of edible oils, the Central Government has proposed changes in the VOPPA and edible oil traders opined that an attempt has been made to regulate all producers and sellers of vegetable oil or any related product including solvent extracted oil by modern methods.
Shankar Thakkar, national president of the Edible Oil Traders Federation, has said that this move by the Department of Consumer Affairs is against the principle of ease of doing business and would add another layer of licensing raj.
The proposed order also states that failing to get registration done within the stipulated time will attract a fine.
Edible oil traders fear that these amendments will empower the Directorate of Sugar and Vegetable Oils (DVSO) under the Food Ministry to prescribe the maximum or minimum limit of use of any vegetable oil in the production of any or all vegetable oil products.
The order also proposed that every producer of vegetable oils or vegetable oil products should submit details of the quantity of oil received at their processing unit and the quantity used by them every fortnight. They will also have to give full details of the stock they hold, the quantity and varieties of extracted solvents, the quantity produced and sold in the last one month.
Thakkar strongly opposed this order and said that all edible oil producers are already registered with different departments of the government, and questioned the need for a new registration.
With its implementation, there is a fear of licence raj and regulation returning in the oil trade and an increase in corruption cannot be denied, according to Thakkar.
There are more than 15,000 oil mills and more than 250 vegetable oil manufacturing units in India, most of which produce on a small scale. Making it mandatory for them to register and submit data will create unnecessary barriers to their operations and will be completely contrary to the Prime Minister’s “Ease of Doing Business” vision.
"Hence, this order must be carefully deliberated and discussed among all stakeholders before implementation," said Thakkar.
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