No respite in ghee, pulses, tea prices

Despite the rupee strengthening against the dollar and a decline in world price of various commodities, prices of ghee, cooking oil, tea, pulses and dry fruits continue to stay on the higher side for consumers. One dollar now sells at Rs155 as against Rs164 in June 2019 and therefore should be making imports cheaper.

According to the data of Pakistan Bureau of Statistics (PBS), the average per tonne price of palm oil came down to $550 per tonne in 5MFY20 from $631 per tonne in same period last fiscal. However, consumers are left with no choice but to buy ghee and cooking oil at higher prices. Good quality ghee and cooking oil sells at Rs200-230 per kg/litre, showing a jump of Rs20-30 per litre in the current year.

Total palm oil imports in 5MFY20 stood at 1.230 million tonnes, costing $676m as compared to 1.246m tonnes valuing $786m in same period last fiscal. Soybean oil's average per tonne price plummeted to $689 per tonne from $747 per tonne. Soybean oil imports in terms of quantity and value were 57,553 tonnes and $39m as compared to 54,895 tonnes and $41m.

Member Pakistan Vanaspati Manufacturers Association (PVMA) Atif Rasheed said the price of palm oil in world market has surged to $810 per tonne from $550 per tonne in the last three to four months.

Ghee and cooking oil industry is 95 per cent reliant on imported items including palm oil, palm olienn, soybean oil, vitamins, tin plates, chemicals, etc on which government has imposed duties and taxes. Previous governments used to increase import duty on ghee and cooking raw materials when palm oil in world market used to hover at low prices to avert any revenue shortfall.

"The situation is now different. As world markets are soaring high, the government should cut import duties and taxes on imported raw materials to bring down prices of ghee and cooking oil."