18th Amendment held responsible for falling oilseed yields

ISLAMABAD: Domestic production of Pakistan’s oilseed crops, which once met 30 percent of its edible oil requirements, has declined since the enactment of the 18th Constitutional Amendment, as the country now imports 90 percent of its edible oil needs, while domestic production meets only around 10 percent of local requirements.

Managing Director (MD), Pakistan Oilseed Department (POD), Dr. Basharat Hussain Shah said this while briefing the Senate Standing Committee on National Food Security and Research, chaired by Senator Syed Masroor Ahsan. He said that currently Pakistan meets 90 percent of its edible oil and oilseed requirements through imports.

Shah informed the committee that sunflower cultivation in Pakistan covered 1.1 million acres in 2011 but declined sharply to only 171,000 acres following the devolution of the agriculture sector to the provinces. The import bill for edible oils and oilseeds is projected to reach USD 6 billion in 2025-26, compared to USD 4.971 billion last year, he said, adding that per capita consumption is also expected to rise to 19 kg per annum, up from 17 kg last year, he said.

MD POD said that Pakistan Oilseed Development Board (PODB) was established through a Resolution in pursuance of the Economic Coordination Committee (ECC) decision dated September 26, 1994, as an attached department of the Ministry of Food, Agriculture and Livestock (MINFAL). Following the 18th amendment, MINFAL was devolved, and the PODB was wound up on June 30, 2011, he said.

He said that the PODB was restored on October 9, 2012, for the federal area only under the Ministry of National Food Security and Research (MNFS&R). Declared as a subordinate office under NFS&R on March 21, 2018 and renamed as Pakistan Oilseed Department (POD) on October 11, 2021, he said, adding that the federal cabinet decided to abolish POD in the rightsising initiative undertaken by the federal government since January 1, 2025.

Aamir Ali Ahmed, Secretary MNFS&R, told the committee that the federal government had decided to abolish the POD with effect from January 1, 2025, because agriculture is a provincial subject following the 18th constitutional amendment. However, he said that in view of the strategic importance of oilseed production, the ministry had submitted a summary to the federal cabinet recommending the restructuring of the institution.

Ahmed told the committee that the PODB had been abolished and replaced by the POD as a subsidiary institution. However, he acknowledged that the department continues to face uncertainty regarding its future.

Shah said that the main reason for the low production of domestic edible oil is low import duties on edible oils and oilseeds, which have been stagnant for the last 25 years, encouraging imports of edible oils and oilseeds over local production. He said that import duties on oilseeds have remained fixed at 3 percent in Pakistan for the past ten years, compared to 36 percent in India. He said that Pakistan imposes a duty of Rs10,000 per tonne on palm oil imports, whereas India charges Rs106,000 per tonne. Similarly, Pakistan’s duty on canola imports stands at Rs6,864 per tonne, compared to Rs49,442 per tonne in India.

Lack of locally produced area-specific high-yielding varieties/hybrids of oilseed crops, he said, adding that lack of mechanisation, which is hampering productivity in oilseeds, is another reason for low production.

He said that another reason is no Minimum Intervention Prices (MIP) for oilseeds and an ensured procurement mechanism. He suggested that MIP for oilseeds may be announced on the basis of their cost of production before the start of the season, and the import tariff on edible oils and oilseeds be rationalised.

He said that POD is currently executing two projects, including the national oilseed enhancement programme of Rs10.963 billion and the promotion of olive cultivation on a commercial scale in Pakistan of Rs 5.014 billion.

Shah further said that the federal government allocated Rs4 billion between 2020 and 2026 to increase oilseed production, while local oilseed production generated economic benefits worth Rs364 billion during the same seven-year period.

Senator Masroor Ahsan said that oilseed is an important crop and Pakistan must take concrete measures to reduce its dependence on imports. He noted that the country’s annual per capita consumption of ghee and edible oil stands at 17 kilograms, making the promotion of local oilseed production a matter of national economic importance and food security.

Senator Shahadat Awan questioned the rationale behind the continuity in the department’s activities after the government decided to abolish it nearly one and a half years ago. He stated that subordinate departments lacked financial resources and were unable to function effectively.

Awan stressed that all actions must remain within the framework of the constitution and asked whether the provinces had been taken into confidence regarding the proposed restructuring of the department. He also remarked that there were several controversial aspects in the ministry’s presentation and questioned federal expenditures at a time when the government was seeking additional financial resources through the National Finance Commission.

The committee chairman directed the MNFS&R to provide the committee with complete details of edible oil imports over the last three years to facilitate a comprehensive review of the country’s import dependence and future policy direction.

Copyright Business Recorder, 2026