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Commerce Ministry considering mechanism to curb dumping of edible oil

JAVED MEHMOOD

ISLAMABAD: The Ministry of Commerce (MoC) is seriously considering a mechanism to curb the dumping of edible oil at the time of the harvest of indigenous edible oil-based crops.

Highly-placed official sources told Business Recorder on Wednesday that the ministry had received complaints against the deliberate dumping of edible oil in the country which is aimed at blocking sale of sunflower and canola crops and also manoeuvre their domestic prices. This strategy of importers has causing serious embarrassment to the growers and the solvent industry.

As a result of these complaints, sources said, the ministry is hammering out a mechanism soon with the aim to promote the cultivation of sunflower and canola and to discourage dumping of edible oil.

This issue was also raised by the solvent extractors at a recent meeting held at the Ministry of Commerce and the top brass of the ministry promised to look into this issue deeply in order to find out a fool-proof remedy.

Sources said that during the past few years increasing production of oil-producing crops has purturbed the importers of edible oil as it had helped in slashing import bill beyond the official expectation.

For example, during the past eight months the country has saved a huge amount of $302 million by reducing import of palm and soyabean oil. During July-February 1999-2000 the country has spent $282.249 million on the import of edible oil; $221.262 million on palm and $60.987 million on the soyabean oil.

However, during the corresponding period of 1998-99, the edible oil import claimed $584.361 million; palm oil $429.068 million and soyabean $155.293 million.

This unexpected delighting saving in the import bill of edible oil in eight months of this fiscal has dazzled the high-ups in the ministry which now seems more serious in promoting and protecting the local industry and oil-generating crops.

Sources maintained that in the forthcoming industrial policy, expected by mid-April, a due care would also be given to the local solvent extracting industry while measures would also be announced to pre-empt dumping of edible oil.