Regulation aims to stabilize edible oil supply
Edible Oil Regulation Amendments to Ensure Transparency and Stability: The Ministry of Consumer Affairs has issued a key notification amending the Vegetable Oil Products Production and Availability (Regulation) Order, 2011. This update is issued under the Essential Commodities Act, 1955. The amendment seeks to enhance transparency, ensure fair pricing, and prevent supply disruptions in the edible oil market.
This notification is seen as a step to bring greater accountability in edible oil supply management and to address price fluctuations that directly affect Indian households.
India’s heavy import dependence on edible oils
India is the largest importer of vegetable oils globally, ahead of China and the USA. The country meets a substantial portion of its edible oil demand through imports. Among the imported oils, palm oil holds a dominant share of 59%, followed by soybean oil (23%) and sunflower oil (16%).
Static GK fact: The Solvent Extractors’ Association of India (SEA) plays a major role in collecting and disseminating data about India’s oil import and production.
Domestic production remains insufficient
Though there was a slight improvement in self-reliance—import dependence reduced from 63.2% in 2015–16 to 54.9% in 2021–22—India still depends heavily on other countries for edible oils. The country’s oilseed production remains challenged by rainfed agriculture, low productivity, and lack of advanced farming techniques.
Nearly 72% of oilseed cultivation is under rainfed areas, mainly by small and marginal farmers. These farmers often face input-starved conditions and limited access to high-yield technology.
Major oilseed crops in India
India cultivates nine major oilseed crops: groundnut, rapeseed-mustard, soybean, sunflower, sesame, safflower, Nigerseed, castor, and linseed.
Out of these, soybean (34%), rapeseed & mustard (31%), and groundnut (27%) collectively contribute to over 92% of total oilseed production.
Static GK Tip: Madhya Pradesh is the largest producer of soybean, while Rajasthan leads in mustard production.
Government initiatives to boost domestic production
To reduce dependence on imports, the government launched the National Mission on Edible Oils – Oil Palm (NMEO-OP). This scheme focuses on increasing domestic oilseed production, particularly oil palm, and achieving self-sufficiency.
Another key initiative is the National Food Security Mission – Oilseeds & Oil Palm (NFSM-OS&OP). This aims to increase the productivity of the nine major oilseed crops and expand area under oil palm and tree-borne oilseeds.
Way forward
The amendment in regulations aligns with India’s broader goal of Atmanirbharta (self-reliance) in edible oils. With strategic reforms and targeted schemes, the country aims to build a stable and transparent edible oil ecosystem that can reduce price volatility and support domestic farmers.
Static Usthadian Current Affairs Table
Edible Oil Regulation Amendments to Ensure Transparency and Stability:
| Topic | Detail |
| Regulatory Order | Vegetable Oil Products Production and Availability (Regulation) Order, 2011 |
| Act Invoked | Essential Commodities Act, 1955 |
| Import Share | Palm Oil – 59%, Soybean – 23%, Sunflower – 16% |
| Import Rank | India ranks 1st globally in edible oil imports |
| Major Oilseeds | Soybean, Rapeseed-Mustard, Groundnut |
| NMEO-OP | Scheme to boost domestic oil palm production |
| NFSM-OS&OP | Scheme to improve oilseed crop yield and area |
| Oilseed Cultivation | 72% under rainfed areas, mostly small farmers |
| Key States | Madhya Pradesh (Soybean), Rajasthan (Mustard) |
| Goal | Self-reliance and price stability in edible oils |
