12/1/07 ISLAMABAD  -  The Economic Coordination Committee (ECC) of the cabinet has sought detailed report from the Ministry of Industries and Production on edible oil and ghee prices in the local market, official sources told Business Recorder.

The ministry had informed the ECC that this sector is heavily dependent on import of palm oil whose prices hovered around $400 million per tonne from December 2004 to June 2006, the sources added.

However, the prices of RBD palm olein during June-August 2006 increased from $415 to $480 per tonne showing approximately 15 percent increase but it reached $600 per tonne in November. The ECC was also informed that national average retail price of loose packed ghee increased by 3 per cent in December 2006 against the same month of last year while there was also increase in packed ghee.

The sources said that Pakistan Vanaspati Manufacturers Association (PVMA) has already approached the government, seeking relief in taxes to supply products in the market at a reasonable price. In the light of ECC directives, the Minister for Industries and Production, Jahangir Khan Tareen has convened a meeting of PVMA on Friday (today) to discuss the reasons of increase in price in the international market.

The sources said that the ECC has also asked the Ministry of Food, Agriculture and Livestock (Minfal) to submit a report on the performance of Pakistan Oil Seed Board in the next meeting.