Why is govt considering return to standard sizes for edible oil packs?

The Centre is reviewing a return to standard edible oil pack sizes to make prices easier to compare and reduce confusion over varying quantities, a move industry says will improve transparency

The government is examining the possibility of bringing back standard pack sizes for edible oils under the Legal Metrology framework after industry bodies flagged concerns over the rising use of unconventional packaging quantities. The mandatory standard pack size norms for edible oils had been relaxed from January 1, 2023. 

During a meeting with the Department of Consumer Affairs, industry representatives flagged irregular packaging of edible oils in quantities such as 650 g, 700 g, 810 g, 850 g and 870 g packs, making it harder for consumers to compare prices across similar-looking products. They have proposed that major edible oils should be sold only in standard quantities such as 200 ml, 500 ml, 1 litre, 2 litre, 3 litre, 4 litre, 5 litre, 15 litre/kg and 20 litre/kg packs. 

 

What’s behind the industry associations’ push

 

Industry bodies have argued that the rise of non-standard pack sizes has reduced pricing transparency in the edible oil market, with consumers often struggling to compare prices between brands because packets appear visually similar despite containing different quantities. 

The Soyabean Processors Association of India (SOPA) had written to the Secretary of the Union Consumer Affairs Department on the issue earlier this month. 

Speaking to Business Standard, SOPA Executive Director DN Pathak said after quantity restrictions were relaxed, manufacturers introduced multiple pack sizes with only marginal quantity differences, making it harder for buyers to compare prices. 

“Packers were free to sell edible oil in any size. There were packages of 350 gm, 375 gm, 400 gm, 425 gm and 450 gm. Despite only a 25 gm difference, the pack sizes looked almost identical,” Pathak said. 

He said this often confused consumers, who typically purchase edible oil in standard quantities such as 500 gm or 1 kg. “There were also packages available in both 375 gm and 375 ml, which was confusing for consumers. Manufacturers were just using non-standard pack sizes to deceive consumers." 

On unit-price disclosure, Pathak said it offers little practical help, as most consumers do not calculate per millilitre or gram costs while making quick purchases. “A consumer is unlikely to work out the cost per millilitre or gram and convert it into standard units such as litres or kilograms, particularly when the unit price is displayed in paise with decimal values, such as 24.72 paise per millilitre,” he said.

Why did the govt earlier allow non-standard pack sizes?

The January 2023 move was aimed at giving manufacturers greater flexibility in pricing and packaging. Companies were allowed to introduce varied pack sizes to manage rising input costs without sharply increasing retail prices. 

This practice, often referred to as “shrinkflation”, enabled firms to reduce quantities while keeping prices relatively unchanged. 

However, with a growing number of unconventional pack sizes now available in the market, industry bodies and policymakers believe the lack of uniformity may be affecting pricing clarity for consumers.

What it means for consumers

According to Pathak, standard pack sizes, if reintroduced, could make price comparisons easier and reduce the chances of consumers unknowingly paying more for smaller quantities sold in similar-looking packs.