In a bid to provide a golden chance to well connected importers to make up the loss, the Ministry of Industries and Production is all set to move a summary for the Economic Co-ordination Committee (ECC) suggesting ban on import of canola seed.
Reliable sources said the move is basically meant to create panic in the local market and create shortage of canola seed for pushing the prices up to provide an opportunity to the importers group that includes a close relative of a federal government advisor to sell their stocks at higher rates and make-up the loss they are facing as a result of quick slide in the rates in international market.
The proposal, if it gets a nod from ECC, will not only deprive edible oil consumers to get the benefit of lowering prices in the international market, but also keep the cooking oil industry hostage in the hands of a few importers.
The close relative of the advisor and his fellow importers had bought canola seed when its rates were all time high and ranged between $750 and 770 per ton in the international market. Later the market took a quick turn and canola seed rates came down from $750 and 770 to $560 in the last two weeks.
The importers booked roughly 250,000 to 300,000 tons of canola seeds at maximum rates in June and July this year. The first consignment of 50,000 tons of canola seed booked in mid-June for Pakistan is expected to reach Karachi in the last week of the current month.
The downward trend in canola seed prices is continuing without showing any respite to the importers. This has left the importers in the lurch. They are left with a situation wherein they are facing huge loss on their stocks and incoming consignments.
The new development resulted in bringing an idea in the minds of shrewd importers to get canola import banned from ECC by using the office of the federal advisor who is said to be a close relative of one major importer.
The ban may be for only three to four months. However this period will be enough for importers to sell stocks at higher rates and make up loss. However, any such development will give a message to the consumers who are buying cooking oil at irrationally higher rates that they were meant for exploitation for the benefit of a few.