December 28, 2006	Thursday	Zilhaj 06, 1427

KARACHI, Dec 27: The government has refused to reduce the import duty on palm olien as proposed by the edible oil producers to save the consumers from paying further higher prices.

Ghee and cooking oil makers have been seeking the cut in import duty in order to offset the impact of rising international palm olien prices on the domestic market.

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Shaikh Amjad Rashid told Dawn that he had a telephonic conversation with Adviser to Prime Minister on Finance Dr Salman Shah on Wednesday night. However, the adviser seemed more concerned in revenue shortfall in case the duty on palm olein was cut rather than protecting the interests of consumers.

He said even the adviser did not express any concerns over the rising prices of ghee and cooking oil and was unwilling to convene any meeting of the PVMA members on this purely consumer related issue. Mr Amjad said that Salman Shah had simply said that he would look into the matter.

“If the government is not concerned over the consumers’ grievances then the industry will simply pass on the impact of rising palm olien prices to the consumers as it did last month,” he asserted.

The PVMA chairman said that around 150,000 tons of palm olein were being imported every month but the next month would see arrival of only one shipment of 15,000 tons as importers were reluctant to bring in costly raw material for making ghee and cooking oil.

He said the price of 16-kg tin had been increased to Rs1,200 on Wednesday (Dec 27) from Rs972 few months back due to rising C&F price of imported RBD palm olein. Besides, the branded ghee and cooking oil makers had already passed on the impact to the consumers two times during the current year.

On January 1, 2006, the C&F price of palm olein was Rs25,259 per ton ($417.50 per ton) which rose to Rs37,510 ($620) on December 27, 2006. Total landed price of palm olein surged to Rs56,397 per ton from Rs41,824 on January 3, 2006. The C&F price was Rs36,695 per ton in November 2006 when world palm olein price was $590 per ton, while the landed cost was Rs54,238 per ton.

However, he added that during the last year there had been no increase in cost of packing material, utilities and chemicals and labour, finance, transportation etc.

For protecting the consumers from further hardships, he suggested rationalisation of customs duty and other taxes on edible oil. “The PVMA has also sought time from the chairman Central Board of Revenue (CBR) Abdullah Yousuf in the second week of January to highlight the problems of the industry,” he added.