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Govt has no plan to hike palm oil import duty

KARACHI: The government has no plans to increase duties on edible oil imports in order to protect domestic oilseed production, Agriculture Ministry and industry sources said on Tuesday.

"There is no such proposal from our end," a source close to the ministry told Reuters from Islamabad.

Rumours that Pakistan, a major buyer of Malaysian palm oil, might raise import duties weighed on futures prices on Monday. The Malaysian palm oil market was closed on Tuesday.

Traders said this followed speculation that Pakistan might follow India's move in December to raise the import duty on refined edible oils to 27.5 percent from 16.5 percent.

Farmers are currently sowing sunflower and canola crops, and harvesting will start in April and May.

While dismissing the rumour, a leading Karachi-based palm oil importer said edible oil industry representatives met government officials last week to demand that oilseed import duties be raised.

The solvent industry then asked the government to increase edible oil duties if they raised the duty on seed imports, the importer said. "I guess that's what spread the rumours," he said, adding the government had made no decision on the duties.

Duties on palm oil imports total 6,000 rupees a tonne and 5,250 rupees a tonne on soybean oil. They were last increased in June lat year.

Pakistan has imported 200,000 tonnes of oilseed, mainly sunflower and canola, from Australia, the Ukraine and other parts of Europe since July, trade sources said.

Traders said seed imports had surged since late last year when the government said it would waive a 15 percent central excise duty if international prices were at or above $240 a tonne.-Reuters