Interview with Chairman PVMA:

Published on Friday, 29 December 2017

BR Research recently sat down with Chairman Pakistan Vanaspati Manufacturers’ Association (PVMA), Mr. Abdul Waheed to take PVMA’s point of view on palm oil’s health related issues and the recent tussle with authorities over phasing it out by 2020. Following are the edited excerpts. 

BR Research: There are well documented health issues related to partially hydrogenated oil and trans fatty acids, and there are campaigns in Pakistan like one by the Punjab Food Authority (PFA) against Vanaspati ghee. What is the solution to this issue in your view?

Abdul Waheed: I have a counter question: If Vanaspati ghee is so injurious to health, why has PFA decided to ban its manufacturing, sale and purchase by July 2020? Why not ban immediately?

The association is ready to move to vegetable oils provided there is a defined and systematic process of transition and facilitation. Unfortunately, things just stop there. It is PFA’s job to ensure quality and we completely support their quality assurance role.

BRR: Are you facing the same issue with other food authorities as well?

AW: The irony is that we are facing this issue only in Punjab and nowhere else in the country.

BRR: Tell us about the oil products being used in Pakistan.

AW: We have a consumption of around 70 percent of palm oil, and 30 percent liquid oils or soft oils like soybean oil, cottonseed oil, canola oil, corn oil etc. The issue is with palm oil. The production of these other soft oils in Pakistan is not even close to our monthly oil requirement of 250,000 tons. So in case palm oil is banned, we will have to import these other oils at much higher costs as these are 30-35 percent more expensive. This goes against the essence of competition.

BRR: So what exactly are your demands?

AW: Our demand is that the authorities should work on quality by setting standards and limits, and set up labs for sample approval. We want to sit together and streamline a process that adheres to set quality standards and any transitions.

BRR: How is the situation elsewhere in the world? What is the global scenario?

AW: Let’s start with some facts: total consumption of oils and fats around the globe hovers around 180 million metric tons. Palm oil’s share in this is around 32 percent. Like all other vegetables fat, palm oil too is 100 percent fats. Moreover, it is not genetically modified like some of the other oil. Where it has the same fat content, it has yield of around 3.5-4 tons per acre versus 1 ton per acre of soft oils. Hence, it uses less land.

Coming to the global situation, there is an international trade warfare going on between the manufacturers of soft oils to promote their oil seed. The health factors associated with palm oil and soft oils are similar because all of them are 100 percent vegetable oils. However, there are strong global lobbies that are discouraging palm oil versus soft oils by starting the debate on hydrogenation and saturated /unsaturated fats.

Why I say there is an international warfare going on is because all those lobbying against palm oil are themselves importing palm oil. EU is the third largest importer of palm oil with 4.8 million metric tons of imports annually, while over 3 million tons is being imported by the US. Palm oil is being used in almost all the food sectors, be it the confectionaries, tea whiteners, creamers, fast food, food processing etc. To tell you something interesting, palm oil falls well below Codex Alimentarius or food codes - international food standards.

Since the lobbyists cannot decrease the discount palm oil enjoys for lower cost of production versus that of soft oils that they manufacture, they have taken this other route of highlighting the health hazards.

Coming to the nutrition perspective, palm oil is 100 percent vegetable fat with saturated, mono-saturated and poly-saturated fats – all fit for consumption by global food and health organisations like WHO. There they are not injurious to health.

The issue these days is revolving around trans fatty acids. However, trans fats also have safety limits globally. Some countries have set a limit of 5 percent, while others have set it at 10 percent. In Pakistan, PSQCA that notifies to WHO has set a maximum limit of 10 percent for trans fatty acids. To share something insightful, we have recently received the sampling results from PCSIR, and not a single brand has exceeded 0.5 percent in trans fats.

Also in terms of quality, each and every drop of palm oil imported in Pakistan has to go through the conformity assessment procedures. These are some of the scientific facts that need to be looked at when debating the banning of palm oil.

BRR: Traditionally, Pakistan was importing palm oil from Malaysia, but today Indonesia’s share is increasing. Why?

AW: Both have the same product with the same quality. The issue with Malaysia is that it has a very narrow area; it cannot go beyond 170 million tons. On the other hand, Indonesia has a huge hectarage; its production has touched 350 million tons. They have more manpower too.

BRR: Given the similar weather conditions in areas along the coastal belt, what are the prospects for oil palm cultivation in Pakistan?

AW: In 2005-06, we at PVMA self-imposed an R&D tax on imports of oil seeds. Proceeds were used for palm oil cultivation in Thatta, which produced great results with astonishing yields. Pakistan Oilseed Development Board (PODB) called for applications and I too had applied for 50 hectares. Unfortunately, inefficiency and lack of will turned things sour. Ironically, India replicated the plan and today it is producing around 18 percent of its palm oil at home.