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NewsOils and Fats Sector Coverage

Maharashtra Reverses Course on Loose Edible Oil Ban, Eyes SOP Framework

Fats and oils processing
August 27, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

India's Maharashtra state is set to revisit its blanket prohibition on the sale of loose edible oil, after Chief Minister Devendra Fadnavis stepped in to steer the regulator toward a standard operating procedure (SOP) that addresses adulteration without forcing traditional retailers out of business.

The state's Food and Drug Administration (FDA), led by Commissioner Tukaram Mundhe, had issued a compliance order on August 20 mandating that edible oils and fats be sold only in sealed, tamper-proof, and properly labelled food-grade packaging. The directive was part of a broader crackdown on practices the regulator said it had uncovered during inspections, including the use of non-food-grade containers, relabelling, the reuse of old containers, and the recycling of repeatedly heated frying oil.

Under the original order, the source, batch number, packaging date, and expiry date would all need to be traceable on every package. Violations carry penalties of up to Rs 10 lakh and the possibility of life imprisonment under India's food safety framework.

Yet the restrictions quickly drew resistance from edible oil traders, many of whom operate family-run businesses that have passed through generations. Several state ministers echoed those concerns at Monday's Cabinet meeting, warning that rural consumers — where packaged oil is often unavailable — could be disproportionately affected.

Mundhe initially stood firm, telling local media that the statewide order was «non-negotiable» from a food safety standpoint and that accommodating retailer demands would be inappropriate. The administration retracted that position roughly an hour later, signalling an opening for dialogue.

Fadnavis intervened on Monday, August 24, four days after the original directive, and directed the FDA to chart a compromise path. 'We will direct the FDA to find a middle path by formulating an SOP that ensures the quality of edible oil and prevents adulteration, while also allowing traditional businesses to continue,' he said after the Cabinet meeting.

A senior FDA official subsequently confirmed that a meeting with the state government would be held to draft the SOP, with a final decision expected once those talks conclude. The pivot suggests that Maharashtra is recalibrating its approach to balance consumer protection with the economic realities of small retailers and rural supply chains.

Source: NDTV Profit