Fatty acid distillates (FADs) produced during physical refining of vegetable oil contains large amount of free fatty acid. A mutant of Candida tropicalis (M20) obtained after several stages of UV mutation are utilized to produce dicarboxylic acids (DCAs) from the fatty acid distillates of rice bran, soybean, coconut, palm kernel and palm oil. Initially, fermentation study was carried out in shake flasks for 144 h. Products were isolated and identified by GLC analysis. Finally, fermentation was carried out in a 2 L jar fermenter, which yielded 62 g/L and 48 g/L of total dibasic acids from rice bran oil fatty acid distillate and coconut oil fatty acid distillate respectively. FADs can be effectively utilized to produce DCAs of various chain lengths by biooxidation process.