PVMA-tanker union dispute: meeting today to resolve issue

The Sindh government has stepped up efforts to resolve the lingering dispute between Pakistan Vanaspati Manufacturers Association (PVMA) and the tankers' union, while the NLC has increased its number of tankers to avert any shortage of vegetable ghee/oil in the domestic market.
Sources told Business Recorder here on Friday that to resolve the issue between NLC and tankers' union, the government of Sindh has decided to hold a meeting on January 7, to be presided over by Malir Deputy Commissioner Shoukat Hussain Jokhiyo, before which the representatives of PVMA, NLC and the tankers' union would present their suggestions on how to resolve the problem.
The 4-5 day long strike of the tankers' union against the supply of edible oil by NLC has raised concerns of vegetable ghee/oil shortage in the domestic market. "Keeping this in mind, NLC increased the total number of tankers used for the supply of edible oil from 70-90 to 350 to avoid any shortage of vegetable ghee/oil in the domestic market", sources added.
Before the strike, 20-25 percent of imported edible oil was being supplied to upcountry by NLC, and 70-75 percent by the tankers' union. As the tankers' union went on stroke and suspended supply of oil, the government was left with no option other than to increase the total number of NLC oil tankers, sources added. They said, "PVMA signed a 10-year long agreement with NLC in 2007. According to the agreement, NLC is bound to supply edible oil and PVMA can not stop NLC". The government supports an agreement between PVMA and the tankers' union on the same pattern as that between PVMA and NLC in order to avoid any conflict in future.
In Pakistan local oilseeds (cottonseed, rapeseed, sunflower) barely contribute 20-25 percent (700,000 tons) of total national consumption, which hovers around 3,200,000 tons per annum. Resultantly, shortfall is met with import of edible oils mainly palm oil and oilseeds. Palm oil constitutes 80 percent of total import of edible oil (1.8-1.9 million tons/year) and oilseeds.