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The ability of Candida rugosa(DSM 2031) to produce lipase using vegetable oils as carbon source was investigated. The organism grew on glucose, but the amount of lipase secreted was significantly less compared to that in vegetable oils. This study identified a simple substrate for lipase production and established the utility of sesame oil for increasing the lipase yield. These vegetable oils can be considered as economically viable substrates for lipase production at an industrial scale. The amount of lipase secreted correlated well with the relative percentage of C18: n fatty acid esters present in the respective oils.