Chief Executive Officer (CEO) of Pakistan’s Westbury Group, Abdul Rasheed Janmohammed has pointed out that the year 2020 and the first quarter of 2021 has been volatile for the edible oil and oilseed markets especially for palm oil.
This is due to the first wave of the Covid-19 outbreak as it was responsible for demand constraints and the second wave has been responsible for supply constraints.
The demand and supply constraints affect consumer countries like Pakistan, India, and Bangladesh as these countries are heavily dependent on imports especially edible oils products.
“With a population of around 220 million and a population growth rate of two percent, Pakistan is expected to remain a net importer of edible oils and fats for the foreseeable future.
Currently Malaysia is only importing only eight percent of palm oil products in January to February of 2021 to Pakistan as compared to Indonesia’s 92 percent for the same duration,” Rasheed said.
Additionally, the import of Palm Kernel Extract (PKE) is increasing as PKE is mostly used as a basic ingredient for cattle feed industry and Malaysia has a share of 90 percent in supplying PKE to Pakistan.
“Malaysia should also look into diversifying the trade in palm oil products as imports of Palm Stearin have also touched new heights. Pakistan is currently importing around 100,000 million tonnes every year particularly for Soap Noodles and Toilet Soap. We expect the volume of Palm Stearin to go up with the passage of time.
In this context, Pakistan has also commenced buying of RSPO, RBDPO, MB/SG, and RSPO Stearin with many refineries and industrial units are now RSPO certified in Pakistan,” he concluded.