June 13, 2012

Pakistan spends US$1.5 billion to import 1.467 million tonnes edible oil

In order to meet the local needs during the last eight months of this fiscal year, Pakistan has spent PKR145 billion (US$1.5 billion) to import 1.467 million tonnes of edible oil.

The major oilseed crops grown in the country include sunflower, rapeseed, cottonseed and mustard and local production during the period was 0.636 million tonne.

An official source on Tuesday (June 12) said although cotton crop is grown for its lint, cotton seed contributes 50-60% of local edible oil production. At present, total requirement of edible oil in the country is 2.045 million tonne and during the year 2010-11 import bill reached PKR224 billion (US$ 2.611 billion), the official said.

He said the total availability of edible oil was 3.079 million tonne, of which local production contributed 0.696 million tonne (34% of the requirement) while imports of edible oil or oilseeds was 2.383 million tonne.

It is estimated that 10% of the total availability of edible oil is consumed in industries like cosmetics, paints and other allied products. He said around 200,000 tonnes of edible oil is exported, mainly to Afghanistan. This does not include smuggling through porous borders which is not accounted for.