Because of its soaring prices in the world market the cost of importing palm oil went up by 99 percent during December 2007 as compared to December 2006, said traders on Saturday.
Huge demand of the commodity was attributed to its price increase, an importer of palm oil said, adding that it was now world-wide being extracted for energy purposes, after the petroleum oil surge in the world market.
There are some larger countries, including China and India, which are investing heavily to pile up stocks of palm oil for also future needs, they said, and added that a phenomenal rise had been witnessed in the palm oil demand since its conversion into bio-diesel.
Pakistan imported $99.363 million worth of palm oil in December 2007 as compared to $49.956 million during December 2006, showing a rise of $49.407 million or 98.90 percent, according to official statistics. However, on monthly basis, the import of palm oil tumbled by $32.079 million, or 24.18 percent, during December 2006 as compared to $131.442 million during November 2007.
In the first half of the current fiscal year, the commodity import rose to $671.493 million by $234.032 million or 54 percent as compared $437.461 million during the same period of last fiscal year 2006. Importers reiterated that it has become inevitable to import palm oil in large volume despite its skyrocketing prices in the world market. They said that local demand of the commodity was rising to a greater extent on annual basis.
Producing palm products for local growers has become a waste of time and money because in return they earn less than the overall cost, they said, and added that majority of them were now concentrating on cultivation of viable and lucrative products.
"Cotton, rice and wheat markets have posted a robust growth in terms of value in the country," they added. Indonesia and Malaysia are the major markets of palm oil for Pakistan, while major buyers of the commodity are China and India.
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