ISLAMABAD - The Small and Medium Enterprises Development Authority (Smeda)has proposed to the ministry of industries and production that 15 percentadditional duty should be imposed on imported edible oil to protect thelocal growers involved in the production of edible oil, Smeda sourcesinformed Business Recorder here on Thursday.Sources said, though, prices of edible oils has increased by 70 percent inthe international market during recent months, necessary measures wererequired to protect the local industry from this onslaught.They further said, local production of edible oil has already shrunk from$ 322 million in 1998-1999 to $ 142 million in 2000-2001, and the trendindicates that the government was not encouraging the local industry bytaking required steps.Sources said, Pakistan Oilseeds Development Board (PODB) failed domesticpolicies have forced Smeda to approach the federal government foradditional steps to save the local industry which was badly needed, sothat the country could produce edible oil in such a quantity to meet thenational requirements.Although, the import of palm oil and soyabean oil have decreased by 50percent and 12 percent respectively during the previous year, however,Pakistan has spent about $ 325 million on the import of edible oil fromdifferent markets, sources added.When the Central Board of Revenue (CBR) sources was contacted to know theduties on edible oil, they disclosed that duty on edible oil is the secondhighest after cars.On the other hand, Pakistan Vanaspati Manufacturers Association (PVMA) isdemanding reduction in custom duty on edible oil, as prices of thecommodity were already skyrocketing in the international market. Likewise,prices of ghee and edible oil in the local market were being increasedevery day.Sources said, in a recent meeting, the PVMA has asked the ministry ofindustries and production to reduce duty on tin plate, so that the pricesof ghee and cooking oil could be brought under control.

8/13/2001Business Recorder