PAKISTAN is deficit in edible oil. Its indigenous production is below consumption levels, with a very wide gap between production and consumption.

This gap is bridged through import of edible oil worth more than Rs45bn annually. At present oilseed production meets about only 25 per cent of the requirement. Domestic production of edible oil has been fluctuating for the last couple of decades. These fluctuations are due to indigenous marketing, low support price and high cost of production, which is making these crops non-profitable to farmers.

In the past whenever prices of imported edible oil rose substantially in the international market, the custom duty was immediately reduced proportionately so as to avoid further burden on the public. But this has not been practised by the government to give relief to the common man due to its own financial reasons, though the prices of palm products had touched an all-time low in 2008.

Pakistan’s reliance on import of edible oil was 75 per cent during 2009-2010 to meet the consumption demand of its people while only 25 per cent of edible oils are locally produced.

The country is still heavily relying on imports to meet its edible-oil needs. The cost, paid last year for imports, was $760m which is likely to touch the level of $800m at the end of the current fiscal year. However the government has taken some remedial measures, including efforts to go into plantation of palm oils.

FAUQIA YAMEENKarachi