Pakistan's vegetable oil imports are likely to rise amid high domestic prices and a bearish world oil price outlook, dealers said on Wednesday. "The local market is up and will remain bullish so we can expect importers to cash on the situation and import a higher quantity in August, because an increase in consumption is likely during Ramazan," said Ziaul Haq, a Karachi-based dealer.
The Muslim fasting month of Ramazan, starting in the second week of October, is a period of high consumption of oils in Pakistan as people breaking their daily dawn-to-dusk fasts eat fried foods.
"After a dip in demand in July, we believe there will be an increase in import orders as we get close to Ramazan," Haq said.
Dealers said Pakistan's palm oil imports in July were around 80,000 tonnes to 90,000 tonnes, and could go as high as 110,0000 tonnes in August and September.
They estimated that around 90,000 tonnes of palm oil and palm olein were available in the local market, but said more imports would be required to meet demand in August.
Pakistan imports about 1.3 million tonnes of edible oil products a year, mostly Malaysian palm oil and olein, to meet domestic demand of 1.9 million tonnes.
Locally produced cottonseed meets the rest of the demand.
Dealers quoted palm olein at 1,575 rupees per maund.
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