19/04/2011 (The News International) - Pakistanís edible oil imports are likely to go up by five percent in 2011/12 to a record 2.16 million tons, a report of United States Department of Agriculture (USDA) said.

Pakistan meets three quarters of the total domestic edible oil needs through imports, 81 percent of which comprises low-priced palm oil. Total oil consumption in the country is expected to grow by eight percent to 3.53 million tons. Imports of soybean meal are projected at 400,000 tons, which mainly come from India.

Pakistan is a net importer of oilseeds and edible oil. Domestic production of the oil is sufficient to meet only 25 percent of the total demand. Domestic oilseed production includes cotton seed, sunflower seed and rapeseed.

On the local side, production of oilseeds in 2011/12 is estimated at a record 5.8 million tons, up 24 percent from 4.7 million tons harvested in 2010/11. Total supply of oilseed available for crushing is forecasted to grow 10 percent to 6.13 million tons.

Cottonseed forms roughly 82 percent of Pakistan’s total oilseeds production. Its production is estimated at 4.8 million tons, a 25 percent surge over last year when the crop was badly hit by the flash floods in the country. The USDA report said that the increase in production was also attributed to higher cotton prices both in the domestic and international markets. Sunflower cultivation area expanded by 65 percent last year on the back of which the production is estimated to be at around 660,000 tons.

The oilseed import forecast includes 1.2 million tons of rapeseed/canola (mainly from Canada, Australia and the Ukraine), and 100,000 tons of sunflower seed from Australia.

The USDA report commented that Pakistanís agriculture policy was largely focused on increasing wheat output to ensure food security.

"Oilseed production typically receives less attention as compared to crops like wheat, rice, cotton and sugarcane," said the report.

There is no support-price mechanism for oilseeds and the government does not procure oilseeds, it added. ìThe lack of availability of quality seed, poor coordination among research organisations, lack of suitable machinery for planting, harvesting and thrashing operations, improper dissemination of site-specific production technologies and lack of research-based crop management are some of the major constraints being faced by the oilseed sector,î it said.

USDA said given the poor quality of local oilseeds and logistical hurdles of transporting oilseeds to crushing facilities, the domestic crushing industry had focused more on importing quality oilseeds rather than providing incentives to local growers for increased domestic production