India’s biggest regulatory overhaul in the vegetable oil sector in more than a decade could put thousands of small and unorganized producers under stress, the Solvent Extractors’ Association (SEA) cautioned on Wednesday.
The government’s Vegetable Oil Products Production and Availability (Regulation) Amendment Order, 2025, replaces key provisions of the 2011 framework and aligns with the Collection of Statistics Act, 2008. It mandates portal-based registration and monthly filings by the 15th of every month, aiming to strengthen transparency, traceability, and market intelligence.
While larger processors are expected to transition smoothly, SEA President Sanjeev Asthana warned that small-scale players—many lacking digital systems—may find it difficult to comply. “The bigger question is whether the government can identify and onboard all such units. Without full coverage, compliance gaps could persist despite tighter rules, defeating the objectives of the Order,” Asthana said.
Industry concerns also extend to data confidentiality, reliability of the reporting portal, and the risk of inadvertent non-compliance if technical glitches occur near deadlines. SEA has urged the government to provide clear definitions for blended and value-added products, ensure robust safeguards for data use, and allow a phased transition to prevent disruption.
The amended order, the government argues, will “enhance transparency, facilitate better policymaking, and boost India’s global competitiveness in vegetable oils.”
Asthana agreed on the long-term benefits but stressed that “no producer—large or small—should be left behind.”
SEA represents 875 members, including about 350 solvent extraction plants with a combined capacity of nearly 30 million tons annually.