The Pakistan Vanaspati Manufacturers Association (PVMA) has projected an increase in the prices of edible oils due to the shortage of supply from the importing countries.
According to the PVMA, there has been an increase in the demand for Malaysian and Singaporean palm oil that will ultimately increase the prices of the import of edible oil.
The association has suggested that the government revise the duty structure on the import of edible oils to avoid an increase in its prices.
Its Chairman, Sheikh Abdul Waheed, has warned that if the government does not intervene, the prices of edible oils will surge significantly within the next couple of months and especially during Ramadan.
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It is expected that the Minister of Industries and Production, Minister Hammad Azhar, and the PVMA will convene a meeting to devise a short-term solution to the problem.
A presentation by the PVMA revealing that the duties and taxes on palm oil at the Singapore market rate are $1,020 per tonne as of 13 January was forwarded to the Ministry of Industries and Production on Wednesday.
The presentation highlighted that “An amount of Rs. 7,692 per tonne is being charged as fixed customs duty, besides additional customs duty of two percent, Pakistan Oilseed Development Board (PODB) cess of Rs. 50, federal excise duty at 17 percent and withholding tax at two percent”.
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The cost of other expenditures including freight charges, insurance costs, port fees, and warehouse surcharges, etc. was also explained in it.
The PVMA Chairman said, “We have informed the authorities that the next palm oil harvest in Malaysia and Indonesia will be in March and April. Therefore, palm and palm olein oil supplies will improve after mid-March”.
