The Maharashtra government has suspended the FDA’s proposed prohibition on loose edible oil sales for one year following objections from traditional traders and concerns over affordability. CM Devendra Fadnavis has also ordered two committees to study traders’ difficulties and infrastructure needs, with reports due within one month.

CM Devendra Fadnavis has given traders a one-year window to adapt their businesses to food safety requirements governing loose edible oil sales | AI Generated File Image

Mumbai, September 1, 2026: The Maharashtra government has granted a one-year exemption from the state Food and Drug Administration’s (FDA) decision to prohibit the sale of loose edible oil, following objections from traditional oil traders and concerns over the impact on small businesses and low-income consumers.

The decision was taken at a meeting between Chief Minister Devendra Fadnavis and representatives of the edible oil industry. The FDA, headed by Commissioner Tukaram Mundhe, had recently moved to prohibit the sale of loose edible oil in the state, citing concerns over adulteration and the need to maintain quality and food safety standards.

🔸CM Devendra Fadnavis chairs a meeting regarding the issues of the sale of loose edible oil in the state.

DCM Sunetra Ajit Pawar, Minister Chandrashekhar Bawankule, Minister Narhari Zirwal, other members from the cabinet, senior officials and other dignitaries were present.



🔸… pic.twitter.com/eMBTczQ7x4

— CMO Maharashtra (@CMOMaharashtra) September 1, 2026

Traders Raise Concerns Over Ban

However, representatives of the oil trading community opposed the decision, arguing that selling loose oil was part of their traditional occupation. They also pointed out that a large section of economically weaker consumers depended on loose edible oil because of its affordability.

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According to sources, following the meeting, Fadnavis announced that the implementation of the FDA’s decision would remain suspended for one year. He clarified, however, that the exemption would be temporary and that there would be no further extension after the one-year period.

“The law regarding the sale of loose edible oil under the jurisdiction of the Food and Drug Administration has been in place since 2011. Quality is an important criterion in the sale of loose edible oil. At the same time, many poor people purchase loose oil. A solution needs to be found between the law and the concerns of the common man,” Fadnavis said.

He directed traders and traditional oil sellers to use the one-year period to make the necessary changes to their businesses and comply with the law once the exemption ends.

Joint Committee To Examine Issues

The Chief Minister also announced the formation of a joint committee comprising FDA officials and representatives of the edible oil trade. The committee will examine what changes traditional businesses need to make to comply with food safety regulations while continuing their operations. The state government will extend assistance if required, he said.

After the meeting, Edible Oil Federation representatives informed the media that traders had sought withdrawal of the ban and welcomed the one-year exemption.

Thakkar argued that loose oil sales were not banned across the country and expressed concern that the decision could adversely affect small and medium traders as well as women involved in the business. He said several traditional oil mills had restarted after the Covid-19 pandemic, with some entrepreneurs taking loans to revive their businesses.

He also disputed concerns that loose oil was necessarily adulterated, saying traders should not be treated as responsible for adulteration merely because the product was sold loose.

The proposed committee is expected to include traders and other stakeholders and will examine the issue during the one-year exemption period. The government has made it clear that businesses will ultimately have to comply with the applicable food safety law.

Two Committees To Address Trade Concerns

The Maharashtra government will constitute two committees to address issues related to the loose edible oil trade and suggest measures to resolve concerns faced by traders and other stakeholders.

One committee will study the difficulties faced by traders engaged in the business through traditional methods and recommend measures to help them make the necessary changes to comply with existing laws.

The second committee will examine the requirements of edible oil sellers, manufacturers, repackaging businesses and other stakeholders and recommend measures to create the necessary infrastructure and facilities for them.

Chief Minister Devendra Fadnavis directed both committees to consult and coordinate with all stakeholders and submit their reports to the government within one month.

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“The government does not want to deprive any businessperson of their livelihood. While ensuring compliance with the law, our focus will be on creating the necessary facilities so that traders can conduct their businesses in a better and safer manner. Wherever required, the government will extend support to help them adapt to the changes,” Fadnavis said.

Moreover, in Maharashtra, there are currently 2,103 licensed loose edible oil traders. Of these, 370 traders hold licences to sell edible oil after repackaging, while 489 have licences for edible oil manufacturing.

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