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Edible oil, wheat import cut to help save $550m

JAVED MEHMOOD

ISLAMABAD: Pakistan is expected to save around $550 million in 1999-2000 by trimming imports of edible oil and wheat due to their better domestic production, officials sources said.

In 1998-99 the country spent $813.82 million on import of edible oil ($590.011 million on palm oil and $223.809 million on soyabean) while during the current fiscal their import bill is likely to be lowered by around $450 million.

In eight months of this fiscal the country had already saved $302.112 million by slashing the import bill of edible oil. During July-February 1999-2000 the country spent $221.262 million on the import of palm oil and $60.987 million on the purchase of soyabean oil.

However, during the same period in 1998-99 around $429.068 million were spent on the import of palm oil and $155.293 million on soyabean. During eight months of this fiscal there is 13.26 percent decline in the quantity of palm oil and 42.19 percent in soyabean.

Similarly, during last year the country purchased 32,37,501 tonnes wheat by spending $406.663 million and during this fiscal its import is expected to be reduced to around $300 million.

During July-February this year although the import of wheat has increased by 15.04 percent, at $258.310 million as against $224.547 million last year, it is expected that in the remaining four months wheat import bill will nosedive sharply as the government has withheld import of 700,000 tonnes of the commodity that had been approved by the Economic Committee of the Cabinet.

Sources in the Ministry of Food told Business Recorder that better upcoming crop of wheat and edible oil producing crops had helped government trim its import bill during this fiscal.

Pakistan Oilseed Development Board has succeeded in motivating the growers to cultivate sunflower and canola crops in the country during the past couple of years, a strategy that has yielded very positive results.

Similarly, the military government has raised the support price of wheat to Rs 300 per maund from earlier Rs 240 as a result of which a record production of wheat, around 20 million tonnes, is expected that would enable the country to achieve the mark of self-reliance in its domestic production for the first time, said sources.

In the days ahead the improved output of both the crops would help the country to reduce dependency on the imported wheat and edible oil.