One-year reprieve for loose edible oil traders

Maharashtra Chief Minister Devendra Fadnavis announced that enforcement action against the sale of loose edible oil will be kept in abeyance for one year, giving traders time to shift to practices that comply with food safety regulations. The decision, announced after a meeting with edible oil traders at Mantralaya on Tuesday, is intended to balance the need for food safety with the livelihoods of traditional vendors.

"Enforcement action against the sale of loose edible oil would be kept in abeyance for one year for the time being. However, there would be no further extension after this period, and compliance with the law would be mandatory," Fadnavis said, as quoted in an official release.

Fadnavis emphasized that the reprieve is temporary and will not be extended. "The law will take its course; however, a transition period is necessary to move from traditional business practices to a system that complies with the law," he said, as quoted by PTI.

The move comes after the Food and Drug Administration (FDA) raised concerns over the sale of loose and unsealed edible oil, including the risk of adulteration. Last month, the FDA issued a compliance order for the sector and FDA Commissioner Tukaram Mundhe urged consumers not to buy loose or unsealed edible oil, calling it unsafe.

According to Hindustan Times, the FDA had enforced a ban on August 20 requiring all cooking oil to be sold in sealed, tamper-evident, and properly labelled food-grade packaging. The ban was revoked on August 24 after intense backlash from traders, several of whom had been in business for generations.

Balancing safety and livelihoods

Fadnavis acknowledged that many low-income and rural consumers depend on loose edible oil because it is cheaper than packaged alternatives, and that the livelihoods of numerous traders are linked to the business. "There is a demand for and a need for loose edible oil even in rural areas. At the same time, the livelihoods of many traders depend on this business. Therefore, it is necessary to find an appropriate balance between the law and the needs of ordinary citizens," he said.

The sale of loose edible oil has been a traditional practice in Maharashtra for many years, making a transition period necessary for traders to change their systems, Fadnavis noted. He assured traders that the government would support them during the transition, with assistance including facilities and, where required, grants or subsidies. The government will also help traders set up quality-testing systems, packaging facilities, and other necessary infrastructure.

"The government does not want to deprive any business of its livelihood. While ensuring compliance with the law, emphasis will be placed on creating the necessary facilities so that businesses can operate in a better and safer manner. The government will extend cooperation wherever necessary to facilitate the adoption of these changes," Fadnavis said during the meeting.

Committees to guide transition

The state government will form two committees to address issues related to the loose edible oil business. One committee will examine the difficulties faced by traders operating through traditional methods and recommend measures to help them make legally compliant changes. The second committee will identify the systems, infrastructure, and facilities needed by edible oil sellers, manufacturers, repackaging units, and other stakeholders to comply with the regulations.

Fadnavis directed both committees to consult all stakeholders and submit their recommendations to the government within one month. A joint committee comprising FDA representatives and traders will also be constituted to recommend measures and provide guidance for implementing these changes, according to an official release.

Deputy Chief Minister Sunetra Pawar, Revenue Minister Chandrashekhar Bawankule, FDA and Special Assistance Minister Narhari Zirwal, and senior officials were present at the meeting.

Regulatory background

The central government had introduced legal provisions regulating the sale of loose edible oil in 2011, citing concerns over adulteration and its potential impact on public health. The Central Advisory Committee has since issued directions for stricter regulation, and four notifications have been issued to operationalise the regulations, with the latest issued on August 28, 2020.

Maharashtra currently has 2,103 licensed businesses dealing in loose edible oil. Of these, 370 are licensed to sell edible oil after repacking, while 489 hold licences for edible oil production.

Fadnavis told traders that they will have to comply with the law once the one-year period ends. "Traders will have to comply with the law once the one-year period ends," he said, as reported by Hindustan Times.