DESPITE efforts to meet the bulk of edible oil requirements from indigenous sources, the country’s dependence on imported edible oil is constantly rising, registering a record increase of 200,000 tons during the last financial year.

Now edible imports are up at 1.8 million tons against the earlier average of 1.6 million tons per year. Meanwhile, the annual consumption of edible oil has increased to three million tons, and the quantity of oil obtained from indigenously produced seeds has decreased, when considered in the context of the country’s overall imports.

About 30 per cent of the edible oil requirement was met from oil seeds produced locally and the rest 70 per cent was imported. However, the ratio of edible oil extracted has now declined to 25 per cent of the total demand as a result of 7.7 per cent annual increase in edible oil consumption due to population growth and increase in per capita consumption. At about 14 – 15 kg per capita, the consumption of edible oil is much higher as compared to Europe’s average of three kg.

About 600,000 tons of edible oil was being extracted from cotton seeds, but this ratio has declined and it is estimated that this year some 500,000 tons of oil will be extracted from cotton seeds.

Of late, the government has been mulling steps to meet bulk of the edible oil demand from local sources. To achieve the objective, the government has decided to increase the area under sunflower cultivation by 10 per cent this year (2008-09) by growing the crop over 1.1 million acres against one million acres last year to produce 2,23,000 tons of edible oil.

Over the years, sunflower has emerged as a popular cash crop and the area under this crop has increased by over 500 per cent, during the last seven years, because of its profitability vis-à-vis other competing crops. Besides, this crop needs little water and a short harvesting time.

The private sector has also announced to purchase sunflower seed at Rs1,200 per 40kg this year against Rs900 per 40kg last year. Apparently, the 33 per cent increase in the purchase price of sunflower seeds is an incentive for farmers to bring more area under sunflower. However, market compulsions seem to have forced the local oil producing companies to announce the increase due to international price of the crop, which is currently hovering around $700 per ton in the international market.

In addition to cotton and sunflower seeds, other primary sources of vegetable oil are: coconut, corn, oil palm, olive, peanut, safflower, soybean and rapeseed; while almond, poppy seed, pumpkin, sesame and walnut seeds are used as oil sources in seasoning or salad dressing. In Pakistan, edible oil is mainly obtained from cottonseed, canola/rapeseed, sunflower and imported soybean. With temperatures ranging between 24 and 35 degrees centigrade, the coastal zones of Sindh and Balochistan, according to Coastal Development Authority, are best suited for oil palm cultivation at places where fresh water is available.

Over 500,000 acres have been identified to be ‘well-suited” for plantation of oil palm along the coastal zones. Some 300,000 acres identified suitable for oil palm cultivation lies in Sindh, while 200,000 acres are in Balochistan. The potential areas suitable for oil palm plantation are Matli, Tando Muhammad Khan, Nindo Shah, Tando Bhago, Kunri, Umerkot, Digri, Jhudo, Jamesabad, Tando Allahyar, Tandojam, Mirpurkhas, Khipro, Hala, Talhar, Keti Bandar, Chohar Jamali, Thatta and Ghulamullah in Sindh and Hub, Sonmiani, Vinder, Pasni and Gwadar in Balochistan.

Oil palm is a cash crop which provides food, fibre and oil. Each hectare under oil palm yields ten-time more oil than most other oil crops and income far exceeds expenditure when both inter-cropping and oil palm plantation is done simultaneously.

During the seven to eight years period required for the maturity of the oil palm trees, income can be generated through inter-cropping of banana, papaya, fodder and vegetables. Oil palm plantation may lead to self-sufficiency in edible oil and thus save precious foreign exchange. It has other socio-economic benefits like increase in industrialisation and income of growers, environmental up gradation and, above all, poverty reduction.

However, this would require sustained efforts for creating awareness among growers, establishment of oil palm nurseries and estates, setting-up of oil extraction factories and provision of technical know-how in addition to easy availability of loans to growers during the gestation period.

Plantation of oil palm, on experimental basis, was initiated in the coastal region in the late 70s and seed imported from Sri Lank, Indonesia and Malaysia was planted there. The positive results led the government to motivate farmers to grow oil palm. The byproducts of the plant are used in manufacturing rugs, ropes, brooms etc.

Rich returns have attracted farmers, both in Sindh and Balochistan, to the cultivation of the plant. In addition to a public sector 360 acre farm in Sindh, oil palm has already been planted over 2,200 acres in the private sector in both the provinces.

Oil palm is a perennial crop that has an economic life span of about 30 years. It needs fresh water for irrigation and grows to a height of 30 metre (100 feet). It is a unique crop in that all of its parts can be used. Its fruits yield two types of oils, palm oil from the mescarp and palm kernel oil from the seed or kernel both of which have different physical and chemical properties. Besides the fruit itself, the terminal bud, called the palm cabbage, and young stems are edible and in some areas considered a delicacy. It also holds tremendous business opportunities in the value added downstream oleo-chemical industry.

Generally, palm oil mills use fibre and shell as fuel to generate steam and electricity to meet their energy demands. Palm-based fibrous materials are suitable for the manufacture of a broad range of products, including medium density fibre board, pulp and paper, furniture, cushions and mattresses. As some 75 per cent of the total requirement for vegetable ghee is now being met from palm oil imports, the country needs to re-double its efforts for meeting bulk of its edible oil requirements from local sources otherwise the edible oil import bill may soon cross a billion dollar mark.