ISLAMABAD, Oct 30: The government and the Vanaspati Manufacturing Association (PVMA) on Thursday agreed to scale down retail price of ghee by an average Rs12 per kg in the wake of decrease in palm oil prices in the international market.

As many as 92 manufacturers of the non-branded ghee, who are PVMA members, will reduce the retail price of ghee from Rs110 to Rs98 to pass on the impact of decrease to the end-consumers.

The branded manufactures of ghee/oil had already reduced the end price of ghee last week. Despite this decline, the government is still pocketing Rs26 per kg under the head of various taxes on ghee.

The decision was reached in a meeting of the PVMA delegation led by its chairman Abdul Wahid with officials of the ministries of industry, commerce, food and Federal Board of Revenue (FBR).

Talking to Dawn after the meeting chairman PVMA Abdul Wahid said the timeline for reduction will be taken after consultation with all members.

An official statement issued after the meeting said the decision of reducing ghee prices was taken to rationalise prices of ghee in the local market in view of the decreasing trend in prices of palm oil in the international market.

After detailed appraisal of the current market price of crude edible oil, cost of its conversion to ghee and allied expenses, the meeting participants unanimously agreed to lower the current price of ghee from prevailing rate.

It was also decided that new price will take effect immediately, added the announcement.