16/08/05 KARACHI (Daily Times) - Palm oil import is expected to increaseby 30 percent to 40 percent amid high domestic demand and a bearish worldoil price outlook, importers and dealers said on Tuesday.

Overall 20 percent rise in the consumption of oil is expected during thisfiscal year in the wake of high prices of soybean oil, they added. "Thelocal market is up and would remain bullish so we are importing morequantity of palm oil from Malaysia and Indonesia to cash on thesituation," they said.

"We have already imported a higher quantity in early August because of anincrease in consumption and it is likely to be up in Ramadan," said RazaIbrahim, a senior member of the Pakistan Vanaspati ManufacturersAssociation. He said almost three months before the start of cold weatherin Punajb, NWFP and other provinces, the importers and manufacturers ofghee enhance their activities.

"The month Ramadan, starting in the second week of October, is a period ofhigh consumption of oils in Pakistan," said Ziaul Haq, another importer ofpalm oil.

He said after a dip in the demand of oil in July around 15 percent, therewould be an increase in import orders as "we get close to the higherdemand from September to December."

The palm oil imports in July were around 85,000 tonnes to 90,000 tonnesand could go as high as 110,0000 tonnes in September. The importers quotedpalm oil at Rs1, 575 per maund. The importers estimated that around 90,000tonnes of palm oil were available in the local market, but said moreimports would be required to meet demand in coming months. “Pakistanimports about 1.35 million tonnes of edible oil products a year, mostlyMalaysian palm oil and olein to meet the domestic demand of 1.9 milliontonnes. Locally cottonseed meets the rest of the demand,” Anis Majeed,member of the Karachi Wholesale Grocers Association, said. staff report