Transporters suspend supply: Serious shortage of vegetable ghee/oil feared
ISLAMABAD: Private transporters have suspended supply of imported edible oil from Karachi terminal to other parts of the country for the last 48 hours which could lead to shortage of vegetable oil, ghee in the domestic market.
Industry sources told Business Recorder on Wednesday that the supply of imported edible oil is carried out by the private transporters and the National Logistics Cell (NLC) from the Karachi terminal to 94 mills of vegetable ghee/oil in Punjab, Khyber Pakhtunkhawa and Balochistan.
"For the last two days, the private transporters have suspended the supply of edible oil and now the supply of the commodity is completely dependent on NLC which is why the volume of supply has considerably reduced and if this situation continues for the next two days it could lead to serious shortage of vegetable ghee/oil in the local market," sources said.
According to sources, private transporters are demanding a ban on NLC supply of edible oil. "They want the entire supply of edible oil be carried out by private transporters so that they may jack up the transportation costs in order to earn windfall profits," sources said.
"We are also receiving life threats," Pakistan Vanaspati Manufacturers Association (PVMA) sources lamented.
Approximately 2,500 oil tankers are engaged in transportation of edible oil.
At any given point of time edible oil stocks available at Port Qasim/Karachi Port range between minimum 150,000 MT to maximum 225,000 MT. The volume (150,000-225,000) is barely enough to meet the national requirement for 20 days only, sources revealed.
The annual consumption of edible oil in Pakistan is around 2 million tons and its usage is 11-12kg per person annually in Pakistan and 7-8kg per person annually in India. Pakistan locally produces just half a million ton (4.5 lac tons from the cotton seeds and 0.5 lac tons from the sunflower and mustard). The country is importing edible oil worth Rs 300 billion annually to meet local demand.