The Hindu Business Line : Allow non-edible sesame oil shipments, urge exporters

Export orders for supply of 483 tonnes (some 23 container loads) were received from China and Taiwan, and several contracts had been entered into prior to the ban.

Mohan Padmanabhan

Kolkata, April 5 Stating that sesame oil is used as a premium edible oil in the country as a majority of consumers favour cheaper substitutes, Bengal-based exporters have urged the Commerce Ministry to lift the ban on export of sesame oil, particularly the non-edible grades, which fetch higher value in international markets.

According to Mr R. Beriwal of B.N. Exports, the “unkindest cut”, over and above the export ban, was the fact that consignments (based on pre-ban export contracts) were not allowed to clear port customs despite the export ban DGFT notification of March 17, 2008 clearly stating that transitional arrangements were allowed under Para 1 of Foreign Trade Policy 2004-2009 and not applicable to the ban imposed.

Mr P.K. Shaw, Chairman of Shellac and Forest Products Export Promotion Council, told Business Line that sesame oil was clearly a foreign exchange earner, and the current ban may destroy the market for it. According to him, only the premium and expensive edible oils, capable of fetching higher prices, were being subjected to exports.

According to the trade in West Bengal, consignments estimated at around Rs 11 crore were held back by port customs authorities citing the edible oils export ban.

Pending orders

Mr Shaw said export orders for supply of 483 tonnes (some 23 container loads) were received from China and Taiwan, and several contracts had been entered into prior to the ban.

Buyers of crude sesame oil are mainly concentrated in China, Taiwan, Sri Lanka, Germany, the Netherlands, the US, Mexico, Singapore, Malaysia and Vietnam. Annual exports from West Bengal, approximating 5,500 tonnes, is valued at Rs 55 crore, against the cost of imported oil at $1,100 per tonne.

According to Shefexil, total edible oil consumption in India is around 130 lakh tonnes, of which some 50 lakh tonnes are imported annually. Sesame oil accounts for only 0.1 per cent of edible oils consumption in India. According to trade sources, against an export of one kg of sesame oil, it would be possible to import two kg of other vegetable oils. Bengal consumes some 10 lakh tonnes of edible oils annually, and sesame oil constitutes only 0.5 per cent of this.

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