June 20, 2008	Friday	Jamadi-us-Sani 15, 1429

ISLAMABAD, June 19: After wheat and sugar, the country’s agriculture sector is in the grip of oilseeds crisis amid a constant surge in prices of edible oil in the local market.

The price of cooking oil has doubled over the past six months touching Rs150 per kg this month and growers, responding to the rising market demand, produced about 11 million tons of oilseeds, almost double than last year’s output of six million tons, and were expecting higher rates for their crop.

However, the Pakistan Oilseeds Development Board (PODB) has been receiving complaints from oilseed growers that they are being offered the last year’s procurement price for canola and sunflower, despite the fact that input costs have more than doubled this season.

The price of cooking oil was Rs60-65 per kg last year.

The All Pakistan Solvent Extractor’s Association (APSEA) last year fixed Rs750 per 40kg for canola and Rs830 for sunflower. But, since then prices of canola and sunflower in the international market has been witnessing a constant increase and currently they range between Rs1,800 and Rs2000 per 40kg respectively.

According to sources, local growers last year produced about 28pc of total oilseeds consumed by the solvent industry. The industry had in January this year increased cooking oil prices across the board in the wake of a hike in the international market, but it did not pass on the benefit of the price hike to the local growers.

Double production of oilseeds this year means that more than 50pc of the solvent industry’s needs will be fulfilled by local farmers.

PODB managing director Dr Qadir Bakhash Baloch told Dawn that he had taken up the matter with the solvent industry. “We want that oilseed growers get at least Rs1,600 per 40kg for their produce,” he said.

Mr Baloch said the farmers must be appreciated for responding to the demand.