Oilseed imports double in 5 years: defying efforts to up domestic output

LAHORE: Pakistan’s oilseed imports have seen a two-fold increase since 2014-15, despite government’s aggressive efforts to enhance domestic cultivation for achieving self-sufficiency in the output of vegetable fats producing crops, The News has learnt.

There is a total failure on the part of federal and provincial governments in increasing local production of oilseed crops and edible oil. The import of oilseeds was 1.67 million metric tons in 2014-15, which jumped to 3.35 million tons in 2018-19, showing a surge of 100.6 percent.

Import of vegetable oil during the same period saw an increase of 11 percent -from 2.98 million tons in 2014-15 to 3.31 million tons in 2018-19.

Pakistan is a major market of crude and refined cooking oil, mainly imported from Malaysia and Indonesia, while it imports soybean seed and oil from USA and Brazil. Soybean occupies main share in the oilseed import as it swelled to record 2.2 million tons during 2017-18 and later in 2018-19, it is projected to touch the mark of 2.6 million tons in 2018-19.

On processing side, a positive trend has been witnessed as crushing of oilseeds increased dramatically in the past several years, reducing import bill to some extent. Especially, greater capacity of solvent extraction in the shape of local crushing of soybeans and canola offset the need for greater edible oil imports.

Despite this trend, Pakistan remains one of the world’s largest vegetable oil importers in the world. In fact, edible imports are now the second largest after petroleum products.

The federal government has time and again asked the provincial governments to focus on oilseed crops to reduce the import bill but to no avail.

The Punjab Agriculture Department also attempted to promote oilseed crops in the province by improving the marketing system with no significant success.

Owing to better return of competing crops, farmers in the province used to get a better return by cultivating such crops. Hence, the government’s efforts for reducing the edible oil import bill by bringing more area under oilseed crops always failed.

Pakistan Agriculture Research Council (PARC), a federal body, also could not contribute in increasing local production of oilseeds.

According to PARC, Pakistan has been constantly and chronically deficient in its production of oilseeds. More than 70 percent of the domestic requirements are met through imports. Despite running several campaigns, the Punjab government’s plan to encourage farmers to sow sunflower did not yield any tangible results.

Commenting on the failure of the government’s department in promotion of local production of oilseed, Ibrahim Mugha, chairman Agri-Forum Pakistan said, “We have not been able to even tap 20 percent demand of oilseeds through local production”.

“Our main output of oilseed is not from the oilseed crop rather we used to get major domestic production from cottonseed, which is a byproduct of cotton plant. Out agriculture systems has badly failed in meeting growing demand of 220 million population of the country,” Mugha said.

He observed that inconsistent policies of government departments and ineptness of officials concerned had done too little, too late, leaving the country trapped in the vicious import circle.

Mughal proposed that areas of Thatta and Badin should be explored for the prospects of cultivating palm trees through attracting foreign investment. “The jumpstart in oilseed production can be achieved by such initiatives,” he said adding,”We also need to develop improved varieties of rapeseed, mustard and canola for increasing yield of such important oilseed crops”.

Mugha further suggested soybean could be introduced in the dryland and marginal land in order to kick-start its domestic production.

“There is also need to promote corn crop, peanut, sesame for edible oil as local climatic conditions favour their cultivations,” he added.

The Agri forum official however warned against promoting sunflower plantation across the province citing this exhaustive crop’s harmful effects on the characteristics of soil.

Regarding, olive oil, Mugha said that some work had been done for its promotion but a lot more needed to be done for increasing its acreage in the country.