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Govt Cracks Down on Edible Oil Firms for VOPPA Non-Compliance

The Government of India has stepped up regulatory enforcement in the edible oil sector by issuing show cause notices to several large edible oil companies for failing to comply with the amended Vegetable Oil Products, Production and Availability (Regulation) Order, 2025. The action follows nationwide inspections conducted by the Department of Food and Public Distribution (DFPD) to ensure mandatory registration and timely submission of monthly production and stock data.
The move signals a firm intent by the Centre to strengthen transparency and accountability across the edible oil value chain, a sector considered critical for national food security and price stability.

Stricter Compliance Under Amended VOPPA Order

The VOPPA Amendment Order, 2025 mandates compulsory registration of all edible oil manufacturers, processors, blenders and re-packers on the National Single Window System (NSWS) as well as the dedicated VOPPA portal. In addition to registration, entities are required to submit detailed monthly returns covering production, stock levels, imports, dispatches, sales and consumption.

The reporting framework applies to a wide range of products including crude and refined vegetable oils, solvent-extracted oils, blended edible oils, vanaspati, margarine and other notified items. According to the government, this data-driven mechanism enables better policy planning and timely market interventions.

Nationwide Inspection Drive Launched

To assess on-ground compliance, DFPD teams have carried out inspection drives at multiple locations, including Karnal in Haryana and Jaipur in Rajasthan. During these inspections, officials verified NSWS and VOPPA registrations, examined the accuracy and punctuality of monthly returns, and interacted with industry stakeholders.

The inspections are part of a broader monitoring strategy to ensure that entities across the edible oil supply chain adhere to statutory obligations. Officials indicated that inspections will continue on a need basis across major edible oil processing hubs.

Capacity Building Alongside Enforcement

Recognising the need for industry facilitation, the Department has also launched capacity-building initiatives. A dedicated workshop was held on January 30, 2026 at the Regional Information Centre in Jaipur to educate stakeholders on NSWS registration, VOPPA portal usage and accurate data reporting.

Similar awareness programmes are planned in other States. The third such workshop is scheduled for February 16, 2026 in Rajkot, Gujarat, considering the region’s high concentration of edible oil processing units.

Show Cause Notices Issued to Defaulters

Based on inspection findings and subsequent reviews, the Department has issued show cause notices to a few major edible oil companies for failing to submit mandatory monthly production returns despite repeated reminders via email and telephone.

Authorities stated that such lapses amount to a clear contravention of the VOPPA Order, 2025, which has been issued under Section 3 of the Essential Commodities Act, 1955.

Legal Provisions and Possible Action

The companies have been informed that under Section 6A of the Essential Commodities Act, action including inspection and confiscation of goods may be initiated in cases of non-compliance. However, as mandated under Section 6B of the Act, entities must be given a reasonable opportunity to present their case.

Accordingly, the concerned units have been granted seven days to submit written explanations as to why penal action should not be initiated against them.

Uniform Enforcement Across the Sector

The Department has clarified that similar show cause notices will be issued to all units that are either not registered under the VOPPA framework or have failed to file mandatory monthly returns. The objective, officials said, is to ensure uniform compliance across the edible oil industry.

The government has reiterated that enforcement measures will be applied evenly, without discrimination, to protect consumer interests and maintain market stability.

Focus on Transparency and Food Security

Reaffirming its commitment, the government stated that strict compliance with the VOPPA Order is essential for effective policy formulation, market monitoring and safeguarding national food security.

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