19/07/2016 (The Nation) - Islamabad Chamber of Small Traders on Sunday asked the government to promote edible oil sector through intervention which will help Pakistan save $2.5 billion annually.

“The government has announced incentives for the agriculture sector in the budget but the edible oil sector has been ignored which is discouraging,” said Shahid Rasheed Butt, Patron Chamber of Small Traders Islamabad. He said the government’s intervention could make the country self-sufficient in edible oil production.

“Edible oil imports are now second largest after fossil fuel in which palm oil enjoys 90 percent share because farmers are at the mercy of middlemen, which is the biggest reason behind lack of interest on the part of growers,” he added. Butt said that self-reliance was possible if land under cultivation was increased, support price was offered, and the coastal belt of Sindh and Balochistan were utilised for production.

He called for enhanced research and development, subsidy on inputs, interest-free loans, gradual increase in duty on imports, employing better technology, improving capacity of grinding mills and empowering Pakistan Oilseed Development Board.

He said that primitive grinding process resulted in wastage of 0.2 million tonnes of cotton seed, while 30,000 tonnes could be extracted from rice bran.

“Pakistan’s per capita consumption stands at 12-13 litres, which is increasing by three percent annually, thus inflating the import bill,” Butt said, and added, “We are producing one-third of the edible oil while the rest is imported.”

Butt said that 40 to 48 percent oil could be extracted from sunflower, 32 percent from rapeseed while 10 to 12 percent could be obtained from cottonseed.