There has been a large-scale slump in the vegetable ghee market due to a number of undesirable concessions granted by the government to the importers of edible oil in Fata and Pata areas.
The sale of vegetable ghee is reported to have declined by about 25 percent.
The industry sources said the palm oil importers in Fata and Pata have now stepped up their sale of imported oil in big cities instead of taking it to their own destinations, adding these importers have also been given sales tax exemption to the extent of 20 percent and 3 percent exemption in advance income tax.
Sources said this issue is being brought to the notice of the government with the appeal that importers in Fata and Pata should be treated at par with the importers in other areas of Pakistan, adding but due to political considerations, the government unexpectedly remains silent over this matter.
The sources said this matter has now reached such a height that many smaller vegetable ghee units have pulled down their shutters for good.
It is also reported that importers of palm oil have been adversely affected due to the increase in the local production of sunflower oil.
Last year, the local production of sunflower oil was reported at about 90,000 tonnes, but this year its production has touched the figure of 0.2 million tonnes, the sources said, adding the local sunflower oil is cheaper than the imported palm oil.
Once again, a strong representation is being prepared by Vanaspati Manufacturers Association which will be presented to the commerce, finance and industry ministers.