MARKET DEVELOPMENT
Millers Cut Edible Oil Prices By Rs3/KG
Millers Cut Edible Oil Prices By Rs3/KG
08/11/2014 (The News International) - Ghee and vegetable oil manufacturers on Friday cut the prices by Rs3/kilogram in line with the soft commodities prices in world market and a drop in inland freight charges after the government slashed the petroleum prices, an industry official said.
“The price of cooking oil and ghee has reduced by $40/ton to $700/ton at the world markets in the last one week,” said Atif Ikram Sheikh, chairman Pakistan Vanaspati Manufacturers Association.
Accordingly, members of the association have resolved to pass on the decline to consumers, he said.
“We are reducing price by Rs2/kg on account of reduction in prices (globally). Another Re1/kg is being cut after goods transporters agreed to lower charges amid significant drop in POL prices in the country,” Sheikh said.
The manufacturers have reduced price of 16 kilogram container of ghee and cooking oil by a total of Rs50 to Rs2,300. Accordingly, the price fell by Rs3.12/kg to Rs143.75/kg in the country.
Sheikh said the price reduction is also being implemented by branded manufactures of the products.
He said the prices of ghee and oil are falling at world markets in line with a downward trend in the crude oil prices. “However, fundamentals of the world ghee and cooking oil industry are stable as the markets are having stronger demands from importing countries.”
Sheikh said Pakistan imports edible oil from Malaysia and Indonesia. Moreover, the local needs are met through around 75 percent imports.
Last calendar year the country had imported 2.4 million tons of edible oil. The country imports three different edible oils, ie, RBD palm oil, palm olein, and crude palm oil. Moreover, it imports 95 percent oil in crude form and the rest of five percent in finished form.
Fareed Qurashi, general secretary of Karachi Retail Grocers Group, said the association has not yet contacted the retailer group to inform its decision. “I have heard the news from media people.”
“We are still selling the branded ghee and cooking oil at Rs150 to Rs200/kg – depending up the brand,” he said, adding, retailers would consider reduction once they would be provided the commodity at lower price.
Steel price slashes by Rs2,000 per ton: Sheikh, who is also the president of Haripur Chamber of Commerce and Industry, said the steel manufacturers have also agreed to reduce price by Rs2,000/ton in connection with the reduction in freight charges.
However, the decision is not taken at the country level. “Around 15 manufactures of steel (re-rolling mills) located at Hattar Industrial Estate, have resolved to reduce the price,” Sheikh said.
He said the price of steel in Haripur has fallen to Rs80,000/ton after the decision. However, the owners of re-rolling mills in all parts of the country should also reduce price of their products in accordance with the decline in their transportation charges, he suggested.
“The price of cooking oil and ghee has reduced by $40/ton to $700/ton at the world markets in the last one week,” said Atif Ikram Sheikh, chairman Pakistan Vanaspati Manufacturers Association.
Accordingly, members of the association have resolved to pass on the decline to consumers, he said.
“We are reducing price by Rs2/kg on account of reduction in prices (globally). Another Re1/kg is being cut after goods transporters agreed to lower charges amid significant drop in POL prices in the country,” Sheikh said.
The manufacturers have reduced price of 16 kilogram container of ghee and cooking oil by a total of Rs50 to Rs2,300. Accordingly, the price fell by Rs3.12/kg to Rs143.75/kg in the country.
Sheikh said the price reduction is also being implemented by branded manufactures of the products.
He said the prices of ghee and oil are falling at world markets in line with a downward trend in the crude oil prices. “However, fundamentals of the world ghee and cooking oil industry are stable as the markets are having stronger demands from importing countries.”
Sheikh said Pakistan imports edible oil from Malaysia and Indonesia. Moreover, the local needs are met through around 75 percent imports.
Last calendar year the country had imported 2.4 million tons of edible oil. The country imports three different edible oils, ie, RBD palm oil, palm olein, and crude palm oil. Moreover, it imports 95 percent oil in crude form and the rest of five percent in finished form.
Fareed Qurashi, general secretary of Karachi Retail Grocers Group, said the association has not yet contacted the retailer group to inform its decision. “I have heard the news from media people.”
“We are still selling the branded ghee and cooking oil at Rs150 to Rs200/kg – depending up the brand,” he said, adding, retailers would consider reduction once they would be provided the commodity at lower price.
Steel price slashes by Rs2,000 per ton: Sheikh, who is also the president of Haripur Chamber of Commerce and Industry, said the steel manufacturers have also agreed to reduce price by Rs2,000/ton in connection with the reduction in freight charges.
However, the decision is not taken at the country level. “Around 15 manufactures of steel (re-rolling mills) located at Hattar Industrial Estate, have resolved to reduce the price,” Sheikh said.
He said the price of steel in Haripur has fallen to Rs80,000/ton after the decision. However, the owners of re-rolling mills in all parts of the country should also reduce price of their products in accordance with the decline in their transportation charges, he suggested.