KARACHI, April 14: The price of 16-kg ghee container has surged to Rs1,180 from Rs1,060 on March 26 following persistent increase in palm olien prices on the world markets. The 16-kg tin was selling at Rs1,000-1,015 on March 1.

In Punjab, the 16-kg ghee tin is now tagged at Rs1,220 as compared to Rs1,075 a month back. In January it was quoted at Rs1,010.

The branded packers of 2.5 litre/kg and five litre/kg ghee and cooking oil tins, who have increased the prices by three times since September 2006, are likely to come out with new prices in May or June in case the palm olien rates in Malaysian market continue to soar.

The packers had already increased the rate in February 2007 by Rs4.8 to Rs6 per kg/litre on ghee and cooking oil tins. Earlier they had increased the rate ahead of Ramazan (September 2006) by Rs4 per kg followed by Rs5 per kg in December 2006. However, the price of 16-kg tin fluctuates daily in the local markets depending on the price movement of palm olien in world markets.Senior Vice-Chairman Pakistan Vanaspati Manufacturers Association (PVMA) Abdul Waheed told Dawn from Islamabad that palm olein rate in world markets was hovering between $735-740 per ton on Friday. In middle of March palm olien rate was $632 per ton while in January it was $417 per ton. The local rate of palm olien surged to Rs2,470 per maund from Rs2,200 in mid of March.

“We have been pressing the government to rationalise duty and taxes on import of palm olien but the government is not paying heed to our demands ignoring its repercussions on common man who are buying the commodity at higher prices,” he said.

He recalled that the India government had finally rationalised taxes and duties on edible oil import to nullify the impact of rising palm olien prices on local the products.

The PVMA had urged the government to follow the Indian pattern of reducing duties and taxes but the government appears more concerned in revenue generation instead of resolving the plight of general public.

A packer said that palm olien production in Malaysia had declined because of weather conditions. In the meantime, India and China had resorted to heavy buying that pushed up palm oil rates.

Currently consumers are paying Rs94 per litre for high quality cooking oil brand.