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ISLAMABAD: The Pakistan Vanaspati Manufacturers Association (PVMA) has called on the government to introduce a comprehensive edible oil policy that includes measures to boost exports and enhance local production.
During a meeting with Commerce Minister Jam Kamal Khan on Tuesday, PVMA Chairman Sheikh Umer Rehan outlined the challenges facing the edible oil industry and proposed measures to improve its sustainability and global competitiveness.
During the meeting, it was pointed out to address Pakistan’s heavy reliance on edible oil imports, which account for 90pc of the country’s edible oil consumption. The request came when the price of edible oil and ghee began to rise due to a drop in palm oil imports from Indonesia and Malaysia. “A robust policy is essential to boost local production and shield the economy from global market disruptions,” PVMA chief emphasised.
He expressed concern over Indonesia’s new legislation mandating that 40pc of palm oil be diverted to biodiesel production. He said this policy has disrupted global supplies, causing price hikes that significantly impact Pakistan, the third-largest importer of palm oil globally.
“The rising prices and reduced availability of palm oil from Indonesia pose severe risks to Pakistan’s food security and local industries,” he warned.
The PVMA chairman urged the government to leverage Pakistan’s status as a major importer to negotiate favourable terms with global suppliers. He also sought reduced import duties and taxes on edible oil sourced from Malaysia and Indonesia to stabilise prices for local consumers.
The PVMA also proposed expanding export opportunities for edible oil products to markets in the Middle East and the United States through sea routes.
Highlighting barriers in the existing Free Trade Agreements (FTA) and Preferential Trade Agreements (PTA) with Malaysia and Indonesia, Mr Rehan called for a reduction of at least 50pc in import duties on soybean and sunflower during Prime Minister Shehbaz Sharif’s upcoming visit to these countries.
An announcement said that Commerce Minister Jam Kamal encouraged the PVMA to submit a detailed proposal within two to three days to address these issues and enable negotiations during the PM’s visit. He assured the industry of the government’s full support in resolving challenges and promoting growth. He also asked the association to include proposals for devising an edible oil policy to reduce Pakistan’s dependency on palm oil imports.
Published in Dawn, December 4th, 2024
