The All Pakistan Solvent Extractors Association (Apsea) on Saturday announced Rs 80 raise in minimum procurement price of sunflower oilseed for the year 2006-2007, to Rs 830, per 40 kg, from last year''s Rs 750.
The decision was taken unanimously at the general body meeting of Apsea here on Saturday. The meeting was presided over by its chairman, Mehboob-ur-Rehman.
"The minimum support price of sunflower oilseed will be 830 per 40 kg for the year 2006-2007, and this is the maximum raise we have ever announced," Mehboob told media people in the office of the Association.
It is factory-reach price, and 8 percent moisture and 2 percent trash will be acceptable by association members, he added. However, the new price will be subject to change in any downward revision in duty tariff structure for import of edible oil, he said.
He said that the existing duty on import of edible oil ranges from 30 to 31 percent while the government was considering curtailing it, gradually, by 15 percent in three years, making a reduction of 5 percent every year. Downward revision in duty tariff structure for import of edible oil will result in closure of soft oil production, besides hitting hard farmers community and poultry industry, he warned. It would also have devastating effects on allied sector - the poultry sector. Besides oil, meal is also extracted from the seed, which is a by-product used by the poultry sector, he clarified.
The existing import duty structure in Pakistan is lowest in the region, he claimed, adding that custom duty on edible oil import in India was 55 percent. "We have conveyed our reservations to the government and it has formed a committee comprising representatives of all stakeholders, including Apsea, farmers, poultry sector representatives and CBR to look into the matter. He said that 1.3 million tons oil is being locally produced every year while similar quantity was being imported.