Prices of branded ghee and cooking oil in Pakistan have surged by up to Rs100 per kilogram per litre, reaching Rs570, despite a global decline in palm oil costs, according to a report by Dawn.
A retailer said that the price of branded ghee and cooking oil has increased by Rs80 per kg/litre to Rs570, adding that the hike is up to Rs100 per kg/litre in some big brands.
As a result, the prices of ghee and cooking oil, which had previously increased by Rs80 per kg/litre, saw a reduction of Rs40 per kg/litre among small and medium-sized players, who hold a significant share of the market.
Pakistan imports 90% of its palm oil from Indonesia and 10% from Malaysia, with an annual consumption of five million tonnes.
According to the data released by the Pakistan Bureau of Statistics (PBS), imports of soya bean oil decreased by 10.01% and palm oil increased by 7.13% during the first five months of the current financial year as compared to the imports of the corresponding period of the last year.
From July-November 2024, over 74,385 metric tons of soya beans costing $73.647 million were imported to tackle the local requirements as against the imports of 74,745 metric tons valued at $81.840 million in the same period of last year.
In the first five months, palm oil imports rose to 1.319 million tonnes, valued at $1.26 billion, compared to 1.248 million tonnes ($1.17 billion) in the same period last year. The average per tonne price (ATP) rose to $954 from $941 in the above period.
Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Umer Rehan stated that palm oil prices in the global market rose to $1,285 per tonne before settling at $1,185. This decline brought down the palm oil rate in the open market from Rs19,000 per maund to Rs16,500 per maund.
As per Rehan, branded products, which constitute only 5% of the market, take longer to adjust prices due to logistical factors like printing, distribution, and marketing. He assured that branded prices are expected to drop gradually.
A delegation of Pakistan Vanaspati Manufacturers Association (PVMA) members met with Malaysia’s Consul General, Herman Hardynata bin Ahmed, on Thursday and requested a reduction in export duties on Malaysian palm oil exported to Pakistan. Chairman Sheikh Umer Rehan highlighted that these concessions would strengthen bilateral trade under the Free Trade Agreement (FTA).
Pakistan offers a 15 %-duty concession under the FTA, but Malaysia does not reciprocate a similar waiver on Pakistan’s exports. He urged the Malaysian government to provide a similar concession to foster trade and cooperation.
The Malaysian Consul General assured that Malaysia would review the proposal and expressed interest in collaborating with PVMA on palm oil plantation projects in Sindh to bolster Pakistan’s domestic palm oil industry.
