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Govt Cracks Down on Edible Oil Giants for Flouting Production Data Rules

The Department of Food and Public Distribution has issued show-cause notices to several large edible oil companies for failing to submit mandatory monthly production returns. The non-compliance is a contravention of orders under the Essential Commodities Act, and the firms have been given seven days to respond. The action is part of strengthened oversight under the amended VOPPA Order 2025, which mandates registration and data filing to create a transparent edible oil ecosystem. The department is conducting nationwide inspection drives and workshops to ensure uniform sector compliance.

Key Points: Govt Notices Edible Oil Firms Over Missing Production Returns

  • Show-cause notices issued
  • Mandatory monthly returns not filed
  • Action under Essential Commodities Act possible
  • Nationwide compliance drives underway
  • Amended VOPPA Order 2025 strengthens oversight
3 min read

Govt issues notices to some large edible oil firms for not filing production returns

Centre issues show-cause notices to large edible oil companies for failing to file mandatory monthly production data, risking action under Essential Commodities Act.

"non-compliance constitutes a contravention of orders issued under the Essential Commodities Act - Official Statement"

New Delhi, Jan 14

The Centre's Department of Food and Public Distribution has issued show cause notices to some large edible oil companies for not submitting mandatory monthly production returns, despite repeated reminders, emails, and telephonic communications, as such non-compliance constitutes a contravention of orders issued under the Essential Commodities Act, according to an official statement issued on Wednesday.

The Department has informed the entities concerned that under the Essential Commodities Act, action, including inspection and confiscation, may be initiated in cases of contravention of orders issued under Section 3 of the Act. A reasonable opportunity to show cause is required before any order of confiscation is made. Accordingly, the concerned units have been given seven days to submit their written replies explaining why action should not be initiated against them under the provisions of the Essential Commodities Act, 1955 and the amended VOPPA Order, 2025, the statement said.

The Centre has strengthened regulatory oversight across the edible oil value chain through the Vegetable Oil Products, Production and Availability (Regulation) Amendment Order, 2025 (VOPPA Order). The amended Order mandates compulsory registration of all manufacturers, processors, blenders and re-packers of edible oils on the National Single Window System (NSWS) and the VOPPA portal, along with monthly submission of detailed production, stock, and availability returns.

The order requires monthly filing of returns covering production, stocks, imports, dispatches, sales and consumption of various edible oil products, including crude and refined vegetable oils, solvent-extracted oils, blended oils, vanaspati, margarine, and other notified products. This framework is a key step towards building a transparent, data-driven edible oil ecosystem to support informed policy planning and strengthen national food security, the statement said.

As part of a nationwide compliance drive, the Food Department has conducted inspection drives, including at Indore, to verify NSWS/VOPPA registration, review the accuracy and timeliness of monthly returns, and engage with industry to promote compliance, as part of a broader plan to ensure transparency and effective monitoring of the edible oil sector.

The Department has further 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 returns, to ensure uniform compliance across the sector. Additionally, inspection drives across multiple edible oil processing units will be carried out on a need basis as part of the Department's continued efforts to ensure strict compliance with the amended VOPPA Order, 2025. Inspections all over and nearby Haryana and Rajasthan have been planned for January 2026, the statement added.

Alongside enforcement, the Department is undertaking capacity-building measures, including a national workshop held in November 2025 at Indore on accurate data reporting, NSWS registration, use of the VOPPA portal, and timely filing of returns, with similar workshops planned in other major states.

- IANS

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Reader Comments

S
Shreya B
While transparency is important, I hope this doesn't become another layer of bureaucratic red tape for smaller players. The VOPPA portal and monthly filings sound complex. The workshops are a good step, but compliance should be made simpler for everyone.
A
Arjun K
Finally! We need data to understand the supply chain. Last year, the sudden spike in mustard oil prices was crazy. If the government has real-time data on production and stocks, they can intervene before a crisis hits the common man. Jai Hind!
P
Priya S
As a consumer, I fully support this. We have a right to know if there's enough oil in the system. These companies make huge profits; the least they can do is file their returns on time. Hope this leads to more stable prices for essentials like dalda and refined oil.
M
Michael C
Working in supply chain analytics, I see the value of this data-driven approach. The NSWS integration is smart. But the success hinges on the portal's user-friendliness and the government's ability to analyze this data effectively for policy.
K
Karthik V
Issuing notices is one thing, following through is another. We've seen big companies get away with a lot. The inspections planned in Haryana and Rajasthan next year need to be thorough and impartial. No VIP treatment for anyone.

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