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Cut in edible oil import to save $500m

ISLAMABAD: Pakistan is expected to save a substantial amount of $500 million during current fiscal owing to slash in its edible oil imports and surge in its domestic production.

In an exclusive talk with APP here on Tuesday Pakistan Oilseed Development Board (PODB) chief Ghulam Farid said an amount of about $235 million had already been saved in the first half of the current fiscal 1999-2000 as import bill of edible oil has trimmed from $452 million in July-December 1998, to $218 million during July-December of 1999.

The government was taking pragmatic steps to boost the production of canola, sunflower and soyabean crops which would ultimately slash the import bill of edible oil in a significant manner, Farid added.

To a question, the PODB managing director said downward trends in the imports of edible oil would help strengthen country's balance of payments position.

Various steps taken by the government included mechanism of automatic fluctuation in the duty on imports of edible oil to protect the domestic growers and solvent industry, he continued.

New policy measures will ensure reasonable price of domestic production of edible oil ranging between Rs 1,400 to Rs 1,500 per 40 kg so that growers could fetch good price of thier product.

Responding to a question, Ghulam Farid said swtich-over from ghee to cooking oil by the people has also led to reduction in the import of edible oil.

The import bill, he said was allowed to be halved with the upbeat performance of canola, sunflower, soyabean and rapeseed crops.

In response to another question, Farid said import of edible oil will be further slashed by another 200,000 tonnes ensuring proper processing of cotton seed by the solvent industry which was earlier going waste.

During 1998-99, he said 1.3 million tonnes edible oil was imported worth $713 million.

To a question, he said the current rainy weather is boon for canola, sunflower and soyabean crops, adding it would help boost their yield.

Edible oil imports declined by 60 percent in the comparable periods of last year, he said continuing, during first six months of the year 1998-99, 697,000 tonnes edible oil worth US$437 million was imported.

During like period of the current financial year, 424,254 tonnes edible oil worth $187 million has been imported.

The decline in import of edible oil is because of improved indigenous production of oilseed crops especialy sunflower, he viewed adding, the PODB carried out a massive promotional programme for oilseeds.

These efforts have resulted in a sharp increase in acreage of oilseed crops with improved yield levels, he stated.

Sunflower was planted on 427,000 acres in spring 1998-99, the highest acreage depicting an increase of 73 percent as compared to previous year's 248,000 acres.

It has yielded 299,000 tonnes oilseed which produce 114,000 tonnes edible oil. Simialry, canola has been planted on 175,000 acres during 1998-99, showing an increase of 43 percent in acreage.

The PODB has fixed targets of 500,000 acres and 300,000 acres for sunflower and canola respectively for the year 1999-2000, he stated adding, these measures would further bring down the edible oil import bill. APP