Edible oil industry highlights challenges

Seeks to enhance competitiveness, reduction in import duties

ISLAMABAD:

Members of Pakistan Vanaspati Manufacturers Association (PVMA), led by its Chairman Sheikh Umer Rehan, on Tuesday held a meeting with Federal Minister for Commerce Jam Kamal Khan, where they highlighted the challenges facing the edible oil industry and proposed measures to enhance sustainability and global competitiveness.

The association chairman underscored the urgent need for a comprehensive edible oil policy to address Pakistan's heavy reliance on imports, which accounted for 90% of the country's edible oil consumption, said a press release.

"A robust policy is essential to boost local production and shield the economy from global market disruptions," he emphasised.

Rehan expressed concern over Indonesia's new legislation requiring 40% of palm oil to be diverted towards biodiesel production. "This policy has disrupted global supplies, causing price hikes that significantly impact Pakistan, the third-largest importer of palm oil globally," he said.

"Rising prices and reduced availability of palm oil from Indonesia pose risks to Pakistan's food security and the local industries," he warned.

The PVMA chairman called on the government to leverage Pakistan's status as a major importer to negotiate favourable terms with the global suppliers.

He also asked for a reduction in import duties and taxes on edible oil sourced from Malaysia and Indonesia to stabilise prices for local consumers.

The association called for expanding export opportunities for Pakistani edible oil products to markets in the Middle East and the United States through sea routes.

Highlighting the barriers existing in trade agreements with Malaysia and Indonesia, the chairman proposed that a reduction of at least 50% in import duties on soybean and sunflower should be discussed during Prime Minister Shehbaz Sharif's upcoming visit to those countries.

Rehan underlined the implementation of a pilot project to produce edible oil from rice husk, a byproduct often wasted in Pakistan despite extensive paddy production.

He cited that neighbouring countries were successfully utilising the rice husk and urged the government to take similar initiatives.