Animal-Feed Oil Sold As Cooking Oil In Vietnam Food Scam, Police Bust ₹26 Crore Racket

Animal-feed oil, typically unrefined and unfit for human consumption, can cause poisoning, toxin accumulation, and long-term health issues such as chronic diseases.

"This fake cooking oil threatens public health," a representative from Vietnam's Department of Food Safety warned, quoted South China Morning Post (SCMP).

Animal-feed oil, typically unrefined and unfit for human consumption, can cause poisoning, toxin accumulation, and long-term health issues such as chronic diseases. Despite this, the syndicate allegedly sold thousands of tonnes over the past three years, raking in an estimated 8.2 trillion dong (approx Rs 26.8 crore), according to Vietnam Television.

Investigators found the group capitalised on the price differential between feed-grade and edible oil, selling the repackaged product at a 17 per cent premium. To avoid taxes, they exploited the 8 per cent value-added tax applied only to edible oils, as animal-feed oil is tax-exempt. The operation also falsely claimed the oil was enriched with Vitamin A, a claim that lab tests later disproved.

Authorities say the oil was moved through underground pipelines into containers labelled for human use, helping the syndicate mask the fraud. Over 900 tonnes of illegally imported oil were seized during the raid. Three suspects now face charges related to the production and sale of counterfeit food products, additives and smuggling, South China Morning Post reported.