Pakistan''s palm oil import bill crossed one billion dollars in seven months of current fiscal year because of its soaring prices in the world market. Importers told Business Recorder on Friday that palm oil prices in the world market have been rising and due to high demand in the country the importers are compelled to import this commodity.
According to Federal Bureau of Statistics (FBS), the country''s palm oil import bill, in terms of volume, surged by 61 percent during June-January period of current fiscal year as compared to same period of last fiscal year. Palm oil import bill reached $1.093 billion during this period against $678 million in corresponding period of last year, depicting an increase of $415 million.
In terms of quantity, palm oil import mounted by 29 percent to 1.2 million tons in June-January of fiscal year 2011 as compared to 0.93 million tons in same period of fiscal year 2010. Month on Month basis import of palm oil increased by 64 percent or $64.579 million to $165 million in first seven months of current fiscal year as compared to $100 million in corresponding period of last fiscal year.
Traders said that importers made quick buying from international market, when prices were surging, as they were expecting further increase in the commodity prices. A healthy import to meet the "Ramazan" demand was another reason of high import bill, they added.
They said low cotton production was another reason of high palm oil import during the period. "Palm oil prices in the world market have witnessed massive surged during last few months and it mounted to $1350 per metric ton from $1050," they said. Although local demand is also growing gradually, an increase of 29 percent in quantity during the first seven months is very shocking, they said, and added that growth in overall import at end of current year will not be more than 5-10 percent.