KARACHI, Feb 29: The ghee price shot up to Rs1,940 per 16 kg here on Friday from Rs1,885 on the back of rising palm olein rate in Malaysia.
In Lahore, the 16 kg ghee tin (normal brand) is now priced at Rs1,970, while branded products are selling between Rs2,020 and Rs2,030. A day back it was available at Rs1,850.
In Islamabad, the ghee rate had surged to Rs1,980 from Rs1,950 on Thursday.
The prices of 16 kg ghee brands fluctuate on daily basis in view of movement in palm olein rate in Malaysia.
On Monday, palm olien rate in Karachi was quoted at Rs4,130 per maund (37.23kgs), while in Malaysia the price for C&F Karachi was hovering between $1,410m and 1,420 per ton.
In the middle of February, the C&F Karachi palm olien rate was quoted at $1,190, while it was $1,160 per ton in mid-January. The C&F price of imported RBD palm olein was $465 in July 2006.
In the middle of February palm olein was available at Rs3,800 while in mid-January it was selling at Rs3,560 per maund.
The 16 kg items are widely used by hoteliers, caterers and sweets makers, while some families also consume its branded quality.
The ghee and cooking oil manufacturers had increased the rate of one kg pouch and 2.5--5 litre/kg tins in the middle of February. A branded ghee pouch now costs Rs134 as compared to Rs123, while the price of oil had been enhanced to Rs136 from Rs125 per kg in January.
This was the eighth increase in prices of ghee and cooking oil manufactured by the leading companies since Sept 2006.
In January, all producers of branded ghee and cooking oil had increased the rate of their brands by Rs9-11 per kg, respectively.
The price of five-kg ghee tin of Dalda had been increased to Rs670 from Rs615, while price of five litres edible oil tin had been jacked up to Rs680 from Rs625 in January this year. In September 2006, the five-kg ghee tin was available at Rs395.
Pakistan Vanaspati Manufacturers Association (PVMA) chairman Abdul Waheed told Dawn from Islamabad that the only solution to contain the rising prices at domestic level is to cut import duty or sales tax on the import of palm olein. “If the new government does not think about it seriously then the prices would continue to rise in future,” he added.
The 16 kg tin of ghee and cooking oil holds 50 per cent market share, while the rest is shared by one kg pouch and 2.5--5 kg/litre products.
In Islamabad, the local palm olien rate was quoted at Rs4,150 per maund, while soyabean oil was selling at Rs4,400 per maund. “The government eats up Rs32 per kg in terms of taxes and duties,” he said.
PVMA vice-chairman Muhammad Ishfaq Malik told Dawn from Lahore that that the price of 16 kg ghee tins (general brands) will rise to Rs2,000 by next week as the price of palm olien has been under pressure.
Because of frequent increase in ghee and cooking oil prices the demand had fallen by 30 per cent in the last one and a half months.
He said in the current per kg price the share of government’s duty and taxes comes to 26 per cent. Malik said that the 10 per cent cut in duty on palm oil imports from January 1, 2008 under the Free Trade Agreement between Pakistan and Malaysia had resulted in just Re1 per kg decline in ghee and cooking oil prices, which cannot be termed as a big relief to the consumers.
Former chairman of PVMA Amjad Rasheed said: “We are waiting for the formation of a new government so that the matter relating to cut in duties and taxes could be discussed with the new commerce minister.”
The PVMA’s bid in putting pressure on the government for reduction in duty and taxes on imports of palm olein for the last one year had failed as the government was more concerned about shortfall in revenues from imports, Mr Amjad said.
