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Edible oilseeds import causes loss to govt

AMER SIAL

ISLAMABAD: The Pakistan Oilseed Development Board's (PODB) support to the solvent extraction plants to import commercial edible oilseeds at zero tariff, apart from adversely effecting the efforts of the growers, has also resulted in sizable loss of revenue to the government.

The acting chairman of Pakistan Vanaspati Manufacturer's Association, Mohammad Saleem Malik, stated this here on Tuesday, while appraising the facts and figures released to press by PODB managing director.

Malik expressed his dissatisfaction over the performance of the PODB while strongly opposing claims of the PODB regarding saving of $ 500 million on edible oil imports. The role of the PODB in helping solvent extraction plants in import of oilseeds at zero tariff needs to be considered by the government.

The PVMA acting president said the solvent extraction units still owe financial liabilities of Rs 250 million to the PODB, which was advanced to them as loans from the credit limit allocated to the PODB by the State Bank of Pakistan in 1996.

He suggested that the utilisation of funds by the PODB during the last five years for improving production of edible oilseeds, needs proper investigation at the highest level.

He said the MD had claimed that the 60 percent decrease in import bill of edible oil bill was achieved due to improved production of domestic oilseed production and by duty free import of oilseeds.

Malik clarified that the decrease in import bill of edible oils resulted due to decrease in prices in the international market, however, no decrease was recorded in imported quantity. Illustrating he said the average price of the RBD palm oil was $ 600 per tonnes while that of soyabean oil was $ 700 per tonnes in 1997-98, which decreased to $ 300 and $ 400 from July 1998 onward respectively.

He said the quantity of palm oil imported during January-December 1998 was 1,995,025,009 tonnes, while it was recorded at 970,921,456 tonnes during the January-December period in 1999. The import of soyabean oil during 1999 was 300,660,000 tonnes against the 279,159,076 tonnes of the corresponding year.

He said the PODB was releasing incorrect figures to the national press to misguide people.

Malik said only 400,000 to 500,000 tonnes domestic edible oilseed is available against the total requirements of 1.7 million tonnes.

Only oilseed available every year in the country is the traditional cotton seed and the achievements of the PODB have remained only on papers like its planning and targets.