KARACHI: Sheikh Umer Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), has called on the government to urgently establish a comprehensive ‘edible oil policy’.

Highlighting the country’s heavy reliance on imports, he emphasised the need to increase local production and mitigate the impact of global market fluctuations.

Rehan noted that Pakistan imports a big chuck of its edible oil, making it the third-largest palm oil importer worldwide. The domestic production accounts for only 10% of the total demand.

He expressed concern over recent developments in Indonesia, the world’s largest palm oil producer, where new legislation has mandated the diversion of 40% blend of palm oil toward bio-diesel. This shift has disrupted global supplies, driving up prices and creating challenges for import-dependent countries like Pakistan.

The reduction in global supply and rising prices, particularly from Indonesia, pose significant risks to Pakistan’s edible oil industry, Rehan warned. “Without pre-emptive measures, these issues could severely impact local industries and lead to shortages.”

He urged Prime Minister Shehbaz Sharif and Federal Minister of Commerce Jam Kamal Khan to prioritise the issue, framing it as a matter of food security.

Rehan recommended leveraging Pakistan’s position as a major importer to influence global pricing and called for policies that incentivise local production and investment in the edible oil sector.

“Delays in formulating an effective policy could make importing oil unaffordable, creating the risk of shortages that would affect the entire country,” Rehan cautioned.

The PVMA chairman appealed for immediate consultations with stakeholders, including Vanaspati manufacturers, to develop a comprehensive strategy.

Copyright Business Recorder, 2024