Government Steps Up Checks on Edible Oil Sector Compliance
New Delhi: The Union government has issued show cause notices to some large edible oil companies for failing to comply with mandatory reporting requirements under the amended Vegetable Oil Products, Production and Availability (Regulation) Order, 2025, as it steps up enforcement following the notification of the revised regulatory framework last year.
The Ministry of Consumer Affairs, Food and Public Distribution said the action followed a nationwide compliance drive by the Department of Food and Public Distribution (DFPD) to verify whether edible oil processing units were registered under the amended VOPPA framework and were filing prescribed monthly returns. The inspections are aimed at strengthening transparency and monitoring across the entire edible oil value chain.
Under the amended VOPPA Order, 2025, all manufacturers, processors, blenders and re-packers of edible oils are required to compulsorily register on the National Single Window System and the dedicated VOPPA portal, and submit detailed monthly returns. These returns cover production, stocks, imports, dispatches, sales and consumption of a wide range of products, including crude and refined vegetable oils, solvent-extracted oils, blended oils, vanaspati, margarine and other notified items.
The ministry said the revised order is intended to create a transparent, data-driven ecosystem for the edible oil sector, enabling informed policy planning and supporting national food security. As part of its implementation, the DFPD has carried out inspection drives at multiple locations, including Indore, to check registration status, review the accuracy and timeliness of filed returns, and engage with industry stakeholders to promote compliance.
Alongside enforcement, the department has undertaken capacity-building measures to facilitate adherence to the new system. A national workshop was organised in Indore in November 2025, focusing on accurate data reporting, registration on the National Single Window System, use of the VOPPA portal and timely submission of returns. Similar workshops are planned in other major states as part of ongoing outreach to the industry.
Based on observations during inspections and subsequent reviews, the department found that some large edible oil companies had not submitted mandatory monthly production returns, despite repeated reminders through emails and telephone communications. The ministry clarified that the alleged non-compliance relates specifically to failure to file required production and related data, and not to pricing or stockholding issues. Such lapses constitute a contravention of the VOPPA Order, 2025, which has been issued under Section 3 of the Essential Commodities Act, 1955.
The department has informed the concerned entities that, under Section 6A of the Essential Commodities Act, action, including inspection and confiscation, may be initiated in cases of contravention of statutory orders issued under Section 3. It has also pointed out that Section 6B of the Act provides for a reasonable opportunity to show cause before any confiscation order is passed. Accordingly, the companies have been given seven days to submit written explanations as to why action should not be initiated against them under the provisions of the Act and the amended VOPPA Order.
The ministry said similar show cause notices will be issued to all units, irrespective of size, that are either not registered under the VOPPA framework or have failed to file mandatory monthly returns, to ensure uniform compliance across the sector. Further inspection drives will be carried out on a need basis across the country, with inspections planned in and around Haryana and Rajasthan during January 2026.
Reiterating the government’s position, the ministry said it remains committed to ensuring transparency, accountability and strict compliance in the edible oil sector, stressing that effective implementation of the amended VOPPA Order is essential for sound policy formulation and safeguarding national food security.
– global bihari bureau
