'Traders smuggling out sesame oil to beat export ban'

Traders are exporting small quantities of sesame oil under the garb of castor oil to beat the ban on edible oil export, a senior industry official said today.

“Sesame seed oil is being exported under the name of castor oil ever since the customs department allowed its (castor oil’s) exports after the initial confusion,” the official said on condition of anonymity, on the sidelines of a two-day edible oil industry convention, organised by Central Organisation for Oil Industry and Trade.

Government had banned export of oilseeds and edible oils on March 18 to boost domestic supplies and curb price rise, but clarified that export of castor oil will be permitted as it is a non-edible oil.

The official said traders are taking advantage of the fact that customs department does not have proper testing facilities or the know-how to distinguish between castor and sesame oil.

India exports about 15,000 tonnes of premium sesame oil annually, mainly to Taiwan, China, Malaysia, and Indonesia.

Various associations have asked government to lift the ban on edible oil exports and also hike duty on import of cooking oils, as their prices have fallen sharply over last few months.