Standard cooking oil packs mooted to cut shifty traders to size
Traders exploited the relaxed norms introduced in 2022 through amendments to the Legal Metrology (Packaged Commodities) Rules, which allowed flexible packaging.
As a result, random sizes such as 800 gm, 810 gm, and 850 gm are being sold in the market as 1 kg packs, allowing sellers to charge full 1 kg prices for lower quantities.
These practice has been flagged as unfair and deceptive, undermining consumer trust. In response, the government now plans to bring back uniform pack sizes such as 5 kg, 2 kg, 1 kg, 500 grams, and 200 grams for cooking oil to prevent pricing manipulation.
This comes in the backdrop of India's cooking oil consumption increasing from 24.6 million tonnes (mt) in 2020–21 to 25.8 mt in 2021–22, and 28.9 mt in 2022–23.
Also read | Adani Wilmar to raise cooking oil prices by 20% following import duty hike
'We are reviewing the complaints regarding unfair trade practices related to disparities between the price and the actual weight of edible oil packs. It's a bit tricky for consumers to calculate the price of a pack weighing 800 grams, but it's much easier for the same consumer to understand the cost of a standard 2 kg or 500 gm pack," the first person said.
As per the consumer affairs ministry data, the all-India daily weighted average retail price of groundnut oil stood at ₹188.82 per kg on 20 May, nearly unchanged from ₹188.76 per kg recorded a year ago.
Mustard oil, however, saw a sharp rise, reaching ₹170.66 per kg compared with ₹135.50 per kg a year earlier. Soya oil was priced at ₹147.04 per kg, up from ₹123.61 per kg last year, while sunflower oil rose to ₹160.77 per kg from ₹123.17 per kg.
Palm oil, one of the most widely used cooking oils, climbed to ₹135.04 per kg from ₹101 per kg. Vanaspati also saw a price increase, reaching ₹154.71 per kg compared to ₹126.40 per kg a year ago.
Read this | BPCL in talks with Sulzer to make aviation fuel from used cooking oil
'The government is reviewing the packaging norms, and after stakeholder consultations, the old standards are likely to be reinstated to ensure better transparency and promote fair trade practices," the second person said.
This change follows mounting confusion among consumers, the person said, adding that all stakeholders have been asked to submit their recommendations on this.
The Indian edible oil market, valued at $4.39 billion in 2024, is projected to reach $6.49 billion by 2030, growing at a compound annual rate of 6.79%, according to TechSci Research.
Industry welcomed the move, calling it essential for ensuring consistency in retail pricing and compliance with the Legal Metrology Act.
'Standardized packaging ensures that price comparisons are simple, transparent, and fair. It creates a level playing field for both consumers and producers, encouraging trust and long-term brand value," said Sudhakar Desai, president, Indian Vegetable Oil Producers' Association (IVPA).
And read | Decoding the dilemma behind escalating cooking oil imports
When the packaging rules were amended in 2021, the Legal Metrology (Packaged Commodities) Amendment Rules mandated the display of the Unit Sale Price (USP) on all packaged goods to help consumers compare prices more easily. Building on that, the 2022 amendment went a step further by removing Schedule II, which had previously required certain essential commodities—like edible oils—to be sold only in standard quantities.
This shift gave manufacturers the freedom to choose pack sizes as per their convenience, leading to a proliferation of non-standard packs in the market.
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