27/12/2007 (The Post, Pakistan), Islamabad - Pakistan imported 100,000 tons of palm oil by December 25 and emerged as the third-largest importer of the commodity.

China is the biggest importer of palm oil importing 303,000 tons of palm oil during same period, while the European Union (EU) is the second-largest importer with 260,000 tons of palm oil, a private television said on Wednesday.

Therefore, a total of 1.17 million tons of palm oil was imported from Malaysia till December 25, which is 0.8 percent less as compared to the last year. Malaysia is the world's largest producer of palm oil. The importers have to pay around 45 percent duty on import value apart from paying 50 percent import landing tax to the government.

Pakistan imports mostly Malaysian palm oil and olein to meet domestic demand of 1.99 million tons, while the locally-produced cottonseed meets the rest of the demand and the edible oil import costs around $ 989 million every year.

Meanwhile, Malaysian palm oil surged to a record high on Wednesday, gaining close to 2 percent, as surging demand for food and fuel amid fears of falling production raised concerns about the supply outlook next year.

Traders said the prices of palm oil, used in products ranging from cosmetics and confectionaries to bio-diesel, could rise further early next year as fears of reduced soy plantings in the United States lift soybean prices to 34-year highs.

By the midday break, the benchmark March contract on the Bursa Malaysia Derivatives Exchange was up 48 ringgit at 3,078 ringgit ($ 923) a ton. Minutes before that, it hit 3,080 ringgit, surpassing the previous high of 3,068 ringgit it hit in November. In the physical market, crude palm oil for December and January shipments in the southern region was quoted at 3,070 to 3,080 ringgit a ton. Trades were done between 3,050 and 3,070 ringgit. Palm oil has risen more than 50 percent so far this year, while soy oil prices have surged close to 62 percent.