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Date: 27.12.2025
Delhi High Court Addresses Import Policy Restrictions on Sandalwood
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.comor on his Mobile +91-9999005379.
On September 25, 2025, the Delhi High Court, under the bench of Honโble Justice, delivered a significant order in the case of W.P. โ(C) 14781/2025, filed by Appellant, a small-scale trader engaged in the import and processing of sandalwood. โ The case revolved around the petitionerโs challenge to the prevailing import policy on sandalwood, which imposes a quantitative ceiling of 5,000 cubic meters (cum) as prescribed under the policy and circulars dated April 7, 2006, and December 31, 2007. โ
Background of the Case
The petitioner argued that the import restrictions on sandalwood are outdated and have outlived their intended purpose. โ These restrictions, according to the petitioner, violate the fundamental rights guaranteed under Article 19(1)(g) of the Constitution of India, which ensures the freedom to practice any profession or carry out any occupation, trade, or business. โ
The petitioner highlighted the adverse impact of the ceiling limit on the unorganized sector, particularly small-scale artisans who rely on sandalwood for manufacturing handicrafts and perfumery products. โ The scarcity of sandalwood due to these restrictions has created challenges for domestic production, which is insufficient to meet the growing demand. โ
Additionally, the petitioner contended that the quantitative ceiling contradicts the second proviso to Section 9A(2) of the Foreign Trade (Development and Regulation) Act, 1992, further emphasizing the need for policy revision. โ
Courtโs Observations and Directions
After hearing the arguments, the Delhi High Court took a balanced approach to address the concerns raised by the petitioner. The court directed that the petition be treated as a representation by the Directorate General of Foreign Trade (DGFT), which is respondent no. โ 2 in the case. โ The DGFT was instructed to consider the petitionerโs grievances and pass an appropriate order in accordance with the law. โ
The court also emphasized the importance of consulting relevant stakeholders, including the Ministry of Environment, Forest & Climate Change, and other concerned parties, before making a decision. โ This ensures that the issue is addressed comprehensively, taking into account environmental, economic, and social factors.
The court mandated that the representation be disposed of through a speaking order within 12 weeks from the date of the order, ensuring a timely resolution of the matter. โ
Implications of the Order
This order is a significant step towards addressing the challenges faced by small-scale traders and artisans who depend on sandalwood for their livelihood. โ By directing the DGFT to review the import policy, the court has paved the way for a potential revision of the quantitative ceiling, which could alleviate the scarcity of sandalwood and support the unorganized sector.
The decision also highlights the judiciaryโs role in balancing economic interests with environmental concerns. By involving the Ministry of Environment, Forest & Climate Change in the decision-making process, the court has ensured that any policy changes will be made with due consideration to sustainability and ecological preservation. โ
Conclusion
The Delhi High Courtโs order in this case underscores the importance of revisiting outdated policies that hinder economic growth and impact livelihoods. It also sets a precedent for addressing similar issues in other sectors where restrictive policies may be causing unintended consequences. As the DGFT reviews the representation and consults relevant stakeholders, it is hoped that the outcome will be a more balanced and progressive import policy that supports small-scale traders and artisans while ensuring the sustainable use of natural resources.
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Source: Delhi High Court
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