Standardizing Edible Oil Packaging: A Move to Aid Consumers
Confusion Over Edible Oil Packaging Sizes
Consumers are facing challenges when purchasing edible oils due to the irregular packaging sizes available in the market. This inconsistency complicates price comparisons for buyers. In response, the government is considering reinstating standard packaging sizes for edible oils as part of the Legal Metrology regulations. This initiative follows concerns raised by industry groups regarding the increasing prevalence of non-standard packaging.
During discussions with the Department of Consumer Affairs, industry representatives highlighted the issue of varying pack sizes, including 650 g, 700 g, 810 g, 850 g, and 870 g, which hinder consumers from effectively comparing prices among similar products. The relaxation of mandatory standard pack size regulations, which took effect on January 1, 2023, has contributed to this confusion.
Industry stakeholders have suggested that major edible oils should be available only in standardized quantities such as 200 ml, 500 ml, 1 litre, 2 litres, 3 litres, 4 litres, 5 litres, 15 kg/litre, and 20 kg/litre. Earlier this month, the Soyabean Processors Association of India (SOPA) addressed this concern in a letter to the Secretary of the Union Consumer Affairs Department.
With the current non-standard packaging, consumers often find it difficult to compare prices across brands, as the packages may look similar while containing different amounts. According to Crisil Ratings, the organized fast-moving consumer goods (FMCG) sector is projected to achieve an 8–10% revenue growth this fiscal year, slightly above the ~8% growth seen in fiscal 2026. This increase is expected to be driven by a 6–7% rise in realisations as companies partially pass on the higher costs of crude-linked inputs, including packaging materials, due to the ongoing conflict in West Asia. However, Crisil also noted that volume growth may slow to 2–3% this fiscal year, down from 5–6% in fiscal 2026, as inflationary pressures impact demand in both urban and rural areas. Additionally, rural demand remains vulnerable to the likelihood of a below-normal monsoon.