Production of ghee and cooking oil halted or retarded in Pakistan due to the non-availability of raw materials. The industry has shared this alarming situation with the Ministry of Industries and Production. The meeting was held with Industry Secretary Imdad Ullah Bosal on Monday.
The Pakistan Vanaspati Manufacturers Association (PVMA) held an exclusive meeting with the Minister for Industries and Production. The association sought information on the costing of vegetable ghee and cooking oil in compliance with price control and prevention of profiteering order 2021.
On the sidelines of meetings, factors such as low domestic stocks of edible oil, depreciation in the value of the Pakistani Rupee, and other compulsions adversely affecting the price movement of end products (ghee/cooking oil) were also discussed by Pakistan’s top officials.
The arrival of cargoes is of those contracts executed in March/April at a price range of $1,750 – 1,850 per ton. At the time of the opening of L/Cs, the US Dollar was at a parity of Pakistan Rupee 182; today, it is Rs 210.
Industry players have now started placing orders for Chinese goods, despite the noticeable uncertainties and substantial financial risk factors. However, under the above-stated unprecedented and highly unpredictable state of affairs, many importers and manufacturers had been reluctant to execute further orders due to political and economic uncertainty.
PVMA said that almost half of the manufacturing units have halted or retarded their production and thus may not be able to comply with the latest costing requirement. Therefore, it requested that the notice be withheld till such a time when domestic stocks are normalized, the budget is formalized, and market forces are stabilized.