Ghee prices increase further in Multan

The prices of edible oil, both imported and local, have further gone up in the wholesale and retail markets of Multan, touching all-time high levels. The price rise came in the face of high rates in the international edible oils market and absence of any regulatory body in the country to check the prices of edible oil and its products.
On Tuesday, the prices of refined, bleached and deodourised (RBD) palm oil and palm olein rose by around Rs 100 from previous week's Rs 3,155 for 40 kg in the wholesale market. This was the highest increase recorded in a week in the edible oil market.
During one month, the prices of RBD palm oil and RBD palm olein have increased by Rs 400 for 40 kg. As a result, the prices of branded one kg/litre ghee and edible oil have climbed to new peak of Rs 120 in the retail market.
"Yes, the prices of edible oil are rising in the international market, but there should be some mechanism to evaluate the profit margin being recovered by ghee manufacturers and edible oil packers," an edible oil importer said while commenting on the situation. "Most of the edible oil suppliers are just packing the imported oil and their profit ratio is very high," he said, adding that "it is the job of the government to determine the profit ratio by calculating the production cost."
He alleged that all the edible oil suppliers in the country were acting like a cartel under the umbrella of their associations. Another factor working in the edible oil market was the weakening US dollar in the international market, he said, and added that the importers were not passing on the benefit of weak dollar to end-consumers.
A vessel named MT Venus 7 was discharging 15,500 tons of palm olein at the local port. Four vessels, MT Gemini carrying 25,000 tons palm olein, MT Bunga Melatis carrying around 20,000 tons of palm oil, MT Stolt Avenir carrying 15,000 tons palm oil and products, and MT Siteam Leopad carrying 8,000 tons palm oil and products were on the high seas. They were expected to arrive between November 13 and 18.