KARACHI, Feb 25: Palm oil demand in Pakistan is expected to rise in the coming week despite high international prices, because of low stocks, dealers said on Wednesday. "Importers have already booked orders for the import of 60,000 tons of palm oil in February," a leading importer Akbar Puri told Reuters.

"In March, demand is expected to rise further." Dealers said not much supply had come into the market in the past week as the local stock position had been hovering around 150,000 tons, but this was only enough to meet local demand for about a month.

They said supplies for orders booked in February would start arriving some time in the second week of March. Mr Puri said one ship carrying 10,000 tons of palm oil was expected to arrive on Thursday, while four more were being loaded in Malaysia.

While international prices remained strong, importers were increasing purchases to meet leftover demand from past months, he said. Dealers said domestic prices had risen in line with international prices and were expected to remain strong.

Consumption of locally produced cottonseed oil also played a role in the surge of domestic prices, dealers said. Pakistan produced 400,000 tons of cottonseed from its current cotton crop.

Millers in Punjab blend cottonseed with other vegetable oils for local consumption. Dealers quoted palm oil at Rs1,960 per maund (37.32 kg) on Wednesday against Rs1,915 a week ago. -Reuters