Oilseeds and Products Update 2012

An Expert's View about Cereals, Leguminous Crops, Oil Seeds in Pakistan

Posted on: 10 Nov 2012

During MY 2011/12 oilseeds imports are expected to be less than the previous year due to lower exportable supplies.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 10/25/2012 GAIN Report Number: Pakistan Oilseeds and Products Update Oilseeds and Products Update 2012 Approved By: Vasquez Orestes Prepared By: M. Shafiq Ur Rehman Report Highlights: During MY 2011/12 oilseeds imports are expected to be less than the previous year due to lower exportable supplies on account of reduced production in Canada and Australia. Significant edible oil imports were witnessed during January -September 2012, with trade balance shifting towards Indonesia as its oil becomes more competitive due to cuts on its export tariff. During this period, Pakistan imported 551,899 metric ton of oilseeds and 1.506 million tons of edible oil. No changes resulted in the PSD tables. Post: Commodities: Islamabad Executive Summary: Status of edible Oils in Pakistan Pakistan’s vegetable oil production is not sufficient to meet domestic demand so the balance is met through imports. The share of imported oil in total consumption is about 75 percent. Refined palm oil accounts for 85 percent of Pakistan’s total edible oil imports as it has a lower price compared to other oils. Blending palm oil with local oils and selling it as cooking oil/ ghee makes up around 99 percent of vegetable oil supply. Oilseeds Imports Matrix During MY 2011/12 oilseeds imports are likely to decrease due to a significant drop in production in the main rapeseed producing countries - Canada and Australia. Reduced production has tightened supplies leading to escalating prices and forcing importers to look for alternatives. Table-1 provides oilseed import statistics for the last two years along with imports for the period January to September 2012. Table 1: Oilseed import Statistics (Figures in Metric Tons) Product CY-2010 CY-2011 Jan-Sept 2012 Rapeseed/canola 1,164,914 736,539 541,328 Sunflower 0 186,208 10,571 Soybean 10 10 0 Total 1,164,924 922,757 551,899 Palm Oil Witnessed a Significant Increase in Imports during January - September 2012 According to trade statistics for the period January-September 2012, imports of palm oil and its products increased by 33 percent compared to imports made during the corresponding period last year. Trade sources attribute this significant increase to lower prices compared with the prices of major competing oils and oilseeds in the international market. Overall, palm oil prices have declined due to growing stocks in Malaysia and Indonesia. Table-2 provides month-wise and item- wise imports of edible oil for CY 2011 and January- September 2012. Table-3 provides edible oil import statistics for the last two years along with imports up to September 2012. Table 2: Edible Oil Import Statistics (Month Wise) (Figures in Metric Tons) IMPORT OF EDIBLE OILS IN PAKISTAN (BASIS ARRIVAL) IN MT FOR JAN-DEC 2011 FOR JAN-SEPT 2012 CDSB CDSB 2011 OLIEN CPO RBDPO O 2012 OLIEN CPO RBDPO O 162,10 Jan 9 70,710 4,949 0 Jan 91,650 75,997 45,721 0 Feb 48,739 26,498 5,500 20,900 Feb 42,247 5,999 20,250 0 Mar 81,605 39,752 1,449 0 Mar 33,496 30,967 41,887 0 Apr 64,899 36,999 6,400 0 Apr 33,698 34,500 91,139 0 106,65 May 7 60,848 8,498 0 May 54,495 37,971 97,386 0 June 25,748 74,943 10,004 0 June 123,307 35,496 83,773 29,000 118,83 July 9 87,971 30,589 22,300 July 111,149 32,999 72,516 0 11,50 Aug 72,619 73,346 23,249 0 Aug 95,479 14,499 66,240 0 Sep 48,440 66,198 10,247 0 Sep 18,249 27,565 47,195 0 Sub 729,65 258,46 100,88 Sub 603,770 295,99 566,10 Total 5 5 5 43,200 Total 3 7 40’500 1,132,205 1,506,370 Oct 47,060 60,998 30,240 0 Oct 10,869 Nov 1 89,242 84,736 0 Nov Dec 85,341 61,495 47,582 8,000 Dec Gran Gran d 970,74 749,00 263,44 d 295,99 566,10 Total 7 0 3 51,200 Total 603,770 3 7 40,500 2,034,390 1,506,370 Table 3: Edible Oil import Statistics (Year Wise) (Figures in Metric Tons) Product CY-2010 CY-2011 Jan-Sept 2012 Palm Olien 1,211,367 970,747 603,770 RBDPO 184,202 263,443 566,107 CPO 491,898 749,000 295,993 CDSBO 45,950 51,200 40,500 Total 1,887,467 2,034,390 1,506,370 Shifting Trade Balance Pakistan signed a Free Trade Agreement (FTA) with Malaysia in May of 2007 and a Preferential Trade Agreement (PTA) with Indonesia in February 2012. Under these agreements, both countries are providing 15 percent margin of preference on the import of palm oil and products from the MFN rate of Rs 9,100 for palm olein, Rs 10,850 for RBDPO, and Rs 8,050 for CPO. Up to last year Malaysia was enjoying 90 percent share in total palm oil trade to Pakistan. However in 2012, due to the entry into force of the Preferential Trade Agreement and the Indonesian government’s move to reduce its palm oil export tariff, Indonesian palm oil has gained market share over Malaysian palm oil. Year-to-date imports reveal that Malaysian palm oil share in the Pakistani market decreased from 90 to 76 percent, whereas, Indonesia improved its share from 10 to 24 percent (Table-4). Table 4: Palm Oil and Products Import from Malaysia and Indonesia Import of Palm Oil Products From Malaysia and Indonesia During Jan-Dec 2011 in M.T PRODUCT MALAYSIA % INDONESIA % TOTAL OLIEN 928,213 96 42,534 4 970,747 3 RBDPO 160,552 61 102,891 9 263,443 CPO 697,012 93 51,988 7 749,000 Sub Total 1,785,777 197,413 Total Import 1,983,190 MALAYSIAN SHARE (% ) 90 INDONESIAN SHARE (%) 10 Import of Palm Oil Products From Malaysia and Indonesia During January-September 2012 in M.T PRODUCT MALAYSIA % INDONESIA % TOTAL OLIEN 583,430 97 20,340 3 603,770 5 RBDPO 237,673 42 238,434 8 566,107 CPO 295,993 100 0 0 295,993 Sub Total 1,117,096 348,774 Total Import 1,465,870 MALAYSIAN SHARE (%) 76 INDONESIAN SHARE (%) 24 RBDPO: Refined Bleached Deodorized Palm oil CPO: Crude Palm Oil CDSBO: Crude Deodorized Soybean Oil
Posted: 10 November 2012

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