Small Change In Edible Oil Pack Can Alter Your Kitchen Budget 

The government has removed Section II of the food packaging norms, which deals with general requirements and labelling of pre-packaged foods.

Should this matter to you? Yes. And here’s why. Earlier, your packaged oil would typically be sold in standardised pack sizes, which could be 200/500 grams, or 1/2/5 litre packs.

But with this important clause being removed, many edible oil companies have started reverting to selling the product in smaller packages. But since the customers are not aware, they are tricked.

For example, an edible oil company selling oil in 1-litre packs needed to follow all specifications and guidelines under Section II — including the quantity. That can now easily be turned into an 850-gram pack.

“The changes in packaging are being done discreetly. A regular consumer will not understand the difference, but eventually they get less oil without realising that,” a senior executive of a large edible oil company told The Secretariat on condition of anonymity.

“Customers are getting cheated, and they have no knowledge of this issue,” the executive said.    

The Indian Vegetable Oil Producers’ Association (IVPA), the apex body representing India’s edible oil refining industry, has urged the government to reinstate standardised pack sizes for edible oils — an important step to ensure transparency, restore normalcy in the market, and protect consumer interest.

“We want the standardisation of packaging. Small weight change or alteration in quantities is something that often doesn’t catch the customer’s attention, it's not visible, and this needs to be corrected,” Sudhakar Desai, President, IVPA told The Secretariat.

To resolve this issue, the country’s edible oil companies and other stakeholders have been asked to submit a proposal within the next 15 days.

Desai added that standardised packaging in the edible oil category, a household essential in India, must uphold transparency while creating a level playing field for both consumers and producers. The IVPA said this will build trust and long-term brand value.

A range like 5 kg, 2 kg, 1 kg, 500 grams, 200 grams, or any other standardised size of packs will be a constructive step toward strengthening the consumer ecosystem, it noted.

Why Was Section II Removed

The clause was removed to provide more flexibility to the food and packaging industry.

The intended benefit was to allow producers to pack their products as they deem fit. It was expected that soon, markets would settle down and consumer awareness of unit selling price would take care of the non-standard pack offerings, the IVPA acknowledged.

However, consumers are now faced with a plethora of brands and pack options that look similar but differ in quantity — leading to confusion and, at times, a misleading value perception. Even with the presence of unit sale prices (USP), small differences in net weight often go unnoticed, reducing the effectiveness of this safeguard in everyday decision-making.

Basic Customs Duty Reduced To Curb Price Hike

Meanwhile, the Centre has slashed the Basic Customs Duty (BCD) on crude edible oils that include sunflower, soybean, and palm oils from 20 per cent to 10 per cent. According to a statement issued by the government, this will help in addressing the escalating edible oil prices resulting from the September 2024 duty hike and concurrent increases in international market prices

An advisory has been issued to edible oil associations and industry stakeholders to ensure that the full benefit of the reduced duty is passed on to consumers.

While almost 65 per cent of the edible oil market is in the organised sector, India is also dependent on imports to cater to the supply.

India is among the top three countries in edible oil consumption. Besides India, China and the US also feature in the list of countries consuming the highest amount of edible oil. According to Worldometer statistics, China leads in total consumption, while India is the second-largest consumer and the largest importer.