After allowing edible oil companies to sell their products in non-standard pack sizes over the past few years, the government is now looking to bring back uniform packaging norms, as consumers struggle to identify ‘value-for-money’ packs amid a flood of confusing sizes and similar-looking pouches.
The move follows complaints from consumers about being charged more for lower quantities of cooking oil, as these non-standard packs often appear nearly identical to higher-quantity packs on the retail shelves and are difficult to distinguish at first glance.
manufacturers, traders and packaging industry bodies also flagged concerns over the growing use of irregular pack sizes such as 650 gram, 700 gram, 810 gram, 850 gram and 870 gram. These packs create confusion among buyers.
Mint explains how the move could help consumers through easier price comparisons and greater transparency, while also benefiting the industry by improving standardization and reducing the risk of being perceived as using misleading packaging practices.
What is the proposal all about?
The consumer affairs ministry is examining a proposal to standardize pack sizes after consultations with industry associations representing nearly 90% of the sector. The industry has suggested standard pack sizes of 200 ml, 500 ml, 1 litre, 2 litres, 3 litres, 4 litres, 5 litres, 15 litres/15 kg and 20 litres/20 kg for major edible oils such as palm oil, soybean oil, sunflower oil, mustard oil, groundnut oil and blended oils.
If implemented, manufacturers would no longer be free to market edible oils in irregular quantities such as 650 gram, 700 gram, 810 gram, 850 gram or 870 gram packs that currently dominate many retail shelves. The proposed norms would apply to both domestically manufactured and imported edible oils.
Why is edible oil such a sensitive category?
Edible oil is among India’s most important food commodities because the country is heavily dependent on imports to meet its demand. India’s rose from 24.6 million tonnes in 2020-21 to 28.9 million in 2022-23. Meanwhile, edible oil imports increased 3% to 16.65 million tonnes in 2025-26, data from the Solvent Extractors’ Association of India showed.
A 2024 report by NITI Aayog showed India’s per capita edible oil consumption has nearly doubled over the past two decades to around 19.7 kg annually. The country’s edible oil market, estimated at $4.39 billion in 2024, is projected to grow to $6.49 billion by 2030, according to TechSci Research.
Why is India considering this move now?
The push comes after consumer rights groups and industry bodies informed the government that the proliferation of near-identical but non-standard pack sizes is making price comparisons difficult for consumers. For instance, two edible oil pouches may look almost identical in size and design but contain different quantities such as 850 gram and 910 gram, making it harder for buyers to judge the actual price advantage.
Government officials say the practice reduces pricing transparency and weakens consumers’ ability to make informed purchasing decisions, especially in a category where household spending is significant and prices fluctuate frequently.
The move also comes at a time when value-for-money buying is becoming increasingly important for households amid the West Asia war-led inflationary pressures across the economy.
What was the change made earlier?
This goes back to changes introduced in packaging rules in 2021 and 2022. Under the Legal Metrology (Packaged Commodities) Amendment Rules, 2021, companies were required to display the unit sale price (USP) on packaged goods so that consumers could compare prices more easily. However, in 2022, the government removed Schedule II from these packaging rules. This was a provision that prescribed standard quantities or pack sizes for sale of certain commodities.
Once the restriction was removed, manufacturers got the flexibility to introduce pack sizes of their choice. That triggered a sharp rise in unconventional packaging formats across the edible oil market.
So, what do companies gain from unconventional pack sizes?
It’s about irregular pack sizes becoming a competitive pricing strategy, say industry executives. Instead of directly increasing the printed retail price , companies could reduce the quantity slightly while maintaining a similar-looking package. This helped brands manage raw material cost fluctuations without making price hikes immediately visible to consumers.
The practice also allowed companies to position products at psychologically attractive price points such as ₹99, ₹149 or ₹199. However, the higher number of pack sizes created confusion for consumers and retailers alike.
Will this cover all pack sizes, even the very small ones?
Not immediately. The government may consider industry’s proposal that sub-200 ml packs should remain outside the standardization scope to ensure availability of affordable low-quantity options, particularly for low-income households and rural consumers.
The government is also considering exempting niche or minor edible oils from the proposed norms. These include sesame, flaxseed, coconut oils as well as specialty cold-pressed variants.
Manufacturers may get a transition period of around three months to shift to the new packaging structure if the proposal is finalized.
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