LAHORE, July 27 Asia Pulse - Pakistan's edible oil imports have crossedthe level of Rs31 billion (US$532million) during the fiscal year 2003-04in the wake of inflated prices at the international level. However, thisfigure is expected to come down as edible oil prices have fallen in theglobal market.

Palm oil prices have already come down to around $450 per metric tonneafter reaching a high of $600 per metric tonne. Last year, edible oilprices skyrocketed following reports that China was buying heavily intoedible oil to build up its reserves.

However, palm oil product prices fell later as China could not liftsufficient quantity, brokers said, adding that the news-cum-speculationprovided an opportunity to a handful of Malaysian brokers to play withmarket sentiments and sell oil at high price levels.

The domestic solvent extraction industry had been growing at a fast pacefollowing the availability of duty-free imported seeds. However, followingthe imposition of sales tax on the import of seeds in the last budget,there was little choice but to decrease the crushing of imported seed andpush the domestic ghee and cooking oil industry so as to increase edibleoil imports beyond $500 million.

(PPI)