New Regulation Overhauls Vegetable Oil Industry, Challenges Small Producers
The government's new vegetable oil regulation faces criticism for potentially burdening small producers lacking digital infrastructure. It mandates digital registration and monthly reporting, aiming to enhance transparency but raising concerns about compliance and data confidentiality. The regulation aims to boost India's global competitiveness in the vegetable oil sector.
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The government's latest regulation in the vegetable oil sector is drawing both acclaim and concern as it represents the most significant overhaul in over a decade. Industry stakeholders, particularly from the Solvent Extractors' Association (SEA), are questioning its impact on smaller producers who may struggle with new digital infrastructure requirements.
The Vegetable Oil Products Production and Availability (Regulation) Amendment Order, 2025, aims to replace key provisions of the previous 2011 framework. It aligns with the Collection of Statistics Act, 2008, to improve transparency and data accuracy throughout the supply chain. However, mandatory portal-based registration and monthly reporting raise apprehensions about compliance, especially among lesser-equipped producers.
SEA President Sanjeev Asthana pointed out potential challenges in onboarding all producers to the new system and warned about persistent compliance gaps. Despite these concerns, the amendment promises enhanced transparency and better market intelligence to bolster policy-making and India's international competitiveness. The government emphasizes the regulation's role in fostering a more documented and regulated sector.
(With inputs from agencies.)
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