KARACHI (July 24 2006): At least two local firms have received consent from the officials concerned for setting up edible oil refineries in Karachi, which would cost around $10 million, sources told Business Recorder on Sunday.

They said that an Islamabad-based party is also interested in establishing an edible oil refinery in Karachi, and its management is currently engaged in negotiations with the concerned officials. It is being anticipated that this party would succeed in getting its refinery in operation in the next six to eight months.

The two local parties, which are currently engaged in erecting their plants in Karachi, are Paracha Textile (ghee unit) and Hamza Edible Oil Refinery, Lahore. Of these, Paracha Textile (ghee unit) is being set up near Shershah (Site), while Hamza Edible Oil Refinery Lahore is busy in constructing its plant near Port Qasim.

Sources said that a Malaysian Group--Felda Group--has also established an edible oil refinery at Port Qasim, with production capacity of 800 tons per day.

"Felda's unit has been producing 800 tons edible oil per day for the last two months. However, its formal inauguration would be held on July 25," sources added.

"The other two units, each likely to cost around $5 million, are also almost ready to start production, but still may take about two months to start regular production," sources said.

According to sources, Hamza Edible Oil Refinery would have the capacity of 500 tons per day, while Paracha Textile Ghee unit would produce 300 tons edible oil per day.

These refineries are using crude palm oil imported from Malaysia and Indonesia.

About the technology used in these three edible oil refineries, sources said that they have procured the latest and world-class technology. "The technology which they (units) are using is 'Continuous Refinery' and has been imported from Sweden, in which the plants run smoothly without getting heated," sources said.

In this connection it would be pertinent to mention that currently the country's demand for edible oil is 1.5 million tons per month, which goes up to 3 million tons during Ramazan. Of this 3 million tons, around 0.6 million tons is supplied by some 128 small and big edible oil refineries across the country.