In response to the rising cost of imported edible oil, the government has decided to encourage and greatly expand indigenous sunflower and canola planting.
This increase in domestic manufacturing will likely result in annual savings of over $7 billion for the nation.
It has been determined to create short-, medium-, and long-term strategies to reduce edible oil imports and expand local production to fulfill the demand since it is anticipated that the import bill for edible oil would exceed $11 billion by 2030.
According to the planned plan, sunflower and canola farming would rise from 150,000 to 600,000 acres, enabling the nation to satisfy 60% of its domestic need and lowering import costs.
Sunflower and canola will be grown on 600,000 acres during the current fiscal year (FY23), and the Ministry of National Food Security & Research reports that incentives would be given to farmers in this respect.
Due to commercial banks’ unwillingness to give US dollars to edible oil importers, the ghee and cooking oil industries issued a critical shortage alert and probable impending catastrophe last week.
The industry provided the State Bank of Pakistan (SBP) with evidence of the fact that, in order to meet domestic demand for edible oil, the nation depends largely—by a margin of more than 90%—on imports.
The industry recommended that the SBP step in and order commercial banks to provide priority and supply USD to edible oil importers in order to head off the impending issues.
To read our blog on “Cooking oil demand in the 3 major markets is seen mixed”, click here