The Centre is preparing a major change in edible oil packaging rules that could soon end the sale of irregular-sized cooking oil packets in India. Under the proposed move, edible oil companies may be allowed to sell products only in government-approved standard pack sizes.
The step is aimed at improving price transparency for consumers and curbing ‘shrinkflation’ — a practice where companies reduce product quantity while keeping packet sizes and prices nearly similar.
According to sources in the Consumer Affairs Ministry, an official order related to the proposed changes could be issued later this month. Companies are also expected to get around three months to make changes to packaging systems and supply chains.
What will change under the proposed rule
At present, edible oil companies have flexibility in packaging sizes under provisions linked to the existing legal metrology framework, allowing brands to sell oils in non-standard quantities such as 850 ml, 900 ml or 4.5 litres. Under the proposed rules, companies would only be allowed to sell edible oil in fixed standard pack sizes including 500 ml, 1 litre, 2 litres, 3 litres, 4 litres, 5 litres, 10 litres, 15 litres and 20 litres. Once implemented, several odd-sized edible oil packets currently available in the market could gradually disappear.
Why is the government bringing this change
Officials believe irregular packaging often creates confusion among buyers while comparing prices across different brands.
For example, a customer may compare the price of a 1 litre edible oil pack with a 900 ml pack without immediately noticing the quantity difference. This can make some products appear cheaper even when their actual per-litre cost is higher.
The government’s proposed move is expected to make pricing more transparent and simplify comparisons for consumers at shops and online platforms.
What is shrinkflation
Shrinkflation refers to a situation where companies reduce the quantity of a product instead of directly increasing its price.
In recent years, several FMCG products, including edible oils, snacks and household essentials, have seen quantity reductions while packet designs remained almost unchanged. Consumer groups and regulators have repeatedly raised concerns over the trend, especially during periods of high inflation.
Which companies could be affected
The proposed packaging changes could impact major edible oil and FMCG companies, including AWL Agri Business, Marico, Patanjali Foods and Emami Agrotech.
Industry players may initially face additional costs linked to packaging modifications, machinery recalibration and logistics adjustments. However, officials believe the move could improve standardisation across the edible oil market over the long term.
