Shortage of edible oil likely in April

The domestic market may face shortage of edible oil once again in April as the stocks available with the Pakistan Vanaspati Manufacturers' Association (PVMA) are limited and the next consignment of imported oil will take a month to reach Pakistan.
Well-placed sources told Business Recorder here on Thursday that the new orders regarding the import of edible oil were not placed due to recent conflict between the Private Tanker Owners Association (PTOA) and the PVMA that led to strike action. "The strike is over and the import orders for edible oil given but the new consignments would take a month to reach the port. So, there could be some shortage of vegetable ghee/cooking oil in the local market next month", sources added.
The PVMA went on strike on February 18 after their tankers were attacked by PTOA members for providing transport contracts to the National Logistic Cell (NLC) against the verbal agreement that was made between PVMA and PTOA in May 2011. But as per the directive of Prime Minister Syed Yousaf Raza Gilani the strike was called off on March 3. The strike action led to a rise in the price of vegetable ghee/edible oil by Rs 8-10 per kilogram.
"It is true that the recent strike increased the prices of vegetable ghee/cooking oil in domestic market but the retailers are buying the commodity at the same price from the mills of vegetable ghee/cooking oil at which they were purchasing before the strike and still they have not brought the price down to pre-strike levels", sources revealed.
PTOA has already refuted allegations of PVMA that tankers' mafia was involved in burning four oil tankers of National Logistics Cell (NLC) in Karachi. "We had been demanding during the strike that NLC should not be allowed to carry edible oil across the country because as per our agreement with PVMA, NLC was not eligible to supply oil. But now the strike is over and PTOA has agreed that NLC may carry edible oil without using private vehicles", PTOA Chairman Bukhtawar told Business Recorder. Bukhtawar said if NLC again started using private vehicles for the supply of edible oil, then PTOA would again go on strike that would lead to an increase in prices of vegetable ghee/oil in local market.