The Hindu Business Line : 10,000 tonnes castor oil for exports held up

What’s in store
Customs authorities are asking exporters to get things clarified from the Directorate-General of Foreign Trade, which in turn, has referred it to the Commerce Ministry.
In turn, the Commerce Ministry has now asked the Consumer Affairs Ministry if castor oil falls under the purview of edible oils.

M.R. Subramani

Chennai, March 25 Castor oil does not figure in the Directorate-General of Foreign Trade’s Chapter 15 that lists animal or vegetable fats and oils and their cleavage products; prepared edible fats, animal or vegetable waxed. Nor is it listed in Rule 5 list of edible oils under the Prevention of Food Adulteration Act. Still, castor oil exports are not being allowed by Customs authorities, citing the Centre’s ban on export of all edible oils from the country.

Controlling inflation

The Centre had imposed the ban on March 17 as part of its efforts to keep rising edible oil prices and inflation under leash.

Confusion prevails at ports where at least two ships are waiting to load castor oil for exports. According to industry sources, 8,000 tonnes of castor oil are to be loaded in these ships. Also, another 100 containers each with 20 tonnes of castor oil have been held up at inland container depots or container freight stations for exports.

“Totally, 10,000 tonnes are now held up at ports awaiting clarification. Plus, these two ships pay $10,000 a day as demurrage charges,” said the sources.

Referred to ministries

Customs authorities are asking exporters to get things clarified from the Directorate-General of Foreign Trade, which in turn, has referred it to the Commerce Ministry. In turn, the Commerce Ministry has now asked the Consumer Affairs Ministry if castor oil falls under the purview of edible oils.

Meanwhile, the Solvent Extractors Association of India has written to the Commerce Ministry, seeking immediate instructions to the Customs authorities to allow the exports of castor oil.

“Our members are exporting castor oil for paint, lubricants and other industrial applications,” said the Solvent Extractors Association of India Executive Director, Mr B. V. Mehta, in his letter. On the other hand, industry sources said the ban would not have any effect and as such, exports of edible oils during the last two fiscal had been negligible.

“But for this year, when 30,000 tonnes of groundnut oil were contracted for exports, hardly 3,000 tonnes of all oils put together were imported,” the sources said.

crude sesame oil

According to official data, crude sesame oil exports declined to 821 tonnes during 2006-07 from 1,682 tonnes the previous year. Refined sesame oil shipments slipped to 818 tonnes (1,662 tonnes) and coconut oil to 48.9 tonnes from 60.9 tonnes. Mustard oil, crude and refined, however, witnessed a different trend rising to 597 tonnes (437 tonnes) and 103 tonnes (36 tonnes) respectively.

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