Cooking oil shortage looms as 300,000 tons of palm oil stuck at Port Qasim 

Newly introduced faceless customs system disrupted clearance process and raised demurrage charges by $60; FPCCI warns delays could drive prices up before Ramadan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned of a potential shortage of cooking oil and ghee during Ramadan, as around 300,000 tons of palm oil remains stranded at Port Qasim due to customs clearance delays. 

FPCCI President Atif Akram said the newly introduced faceless customs system has disrupted the clearance process, affecting supply chains nationwide.

The delay has led to additional demurrage charges of $50-60 per ton on the vessels carrying palm oil. Akram noted that cooking oil prices have already risen by Rs10 per kilogram in the past week and could increase by Rs25-30 per kilogram if the issue persists.

FPCCI Vice President Nasir Khan stated that the crisis has impacted international trade, with Indonesia and Malaysia suspending further palm oil shipments to Pakistan. He pointed out that while the faceless customs system functions well for containerized cargo, it has created challenges for bulk cargo clearance.

Pakistan Vanaspati Manufacturers Association (PVMA) Chairman Sheikh Omar Rehan reported that 10-12 vessels are currently waiting in the channel at Port Qasim. He warned that edible oil stocks in factories are running low and that if clearances are not processed within the next two to three days, prices will rise sharply, and shipments for the coming month will be delayed.

Industry representatives are urging the government to reinstate the previous clearance system to avoid a shortage of essential cooking oils during Ramadan. The delay has already resulted in financial losses for the industry, with concerns that the situation could lead to broader economic consequences if not addressed promptly.

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