This document provides an overview of Pakistan's edible oil economy and market. It states that Pakistan is the world's fourth largest producer of vegetable oil. It cultivates oilseeds across 26 million hectares, with groundnuts, soybeans, and rapeseed/mustard accounting for over 80% of output. However, yields are low at less than one tonne per hectare. While production has increased, it has not kept up with growing consumption, necessitating imports. The document projects that demand for edible oils will rise to 21.3 million tonnes by 2015. It also notes that India imports around 40% of its edible oil needs and has lower per capita consumption than the global average.

1. Pakistan EDIBLE OIL
By
Abdul Moiz DOta

2. Oil & Oil Seeds
• India being deficient in oils has to import 40%
of its consumption requirements.
• With an annual consumption of about 11 mln.
Tonnes, the per capita consumption is at
11.50 kgs, which is very low compared to
world average of 20 kgs.
• China is currently at 17 kg.

3. Overview of Edible Oil Economy
• pakistan vegetable oil is world's fourth largest
after USA, China and Brazil.
• Oilseed cultivation is undertaken across the
country in two seasons, in about 26 million
hectares; mainly on marginal lands,
dependent on monsoon rains (un-irrigated)
and with low levels of input usage.
• Yields are rather low at less than one ton per
hectare.

4. Overview of Edible Oil Economy
• Three oilseeds - Groundnut, Soybean and
Rapeseed/ Mustard - together account for
over 80 per cent of aggregate cultivated
oilseeds output.
• Mustard seed alone contributes Rs.120,000
Mln. turnover out of Rs.600,000 Mln. oilseed
based Sector domestic turnover.
• Cottonseed, Copra and other oil-bearing
material too contribute to domestic vegetable
oil pool

5. Overview of Edible Oil Economy
• Currently, India accounts for 7.0% of world
oilseeds output; 7.0% of world oil meal
production; 6.0% of world oil meal export; 6.0%
of world veg. oil production; 14% of world veg. oil
import; and 10 % of the world edible oil
consumption
• With steady growth in population and personal
income, pakistan per capita consumption of
edible oil has been growing steadily.
• However, oilseeds output and in turn, vegetable
oil production have been trailing consumption
growth, necessitating imports to meet supply
shortfall.

6. Market Potential
• The per capita consumption of oil in India is 11.5
kg/year is way below the world average of 18 kg. Even
china is at 17 kg. By 2010 the per capita consumption
of oil in India is likely to be 15.6 kg. There is huge
potential of growth.
• The demand for edible oils is expected to increase
from Oil Year 2004-05 levels of 10.9 Mln. tonnes to
12.3 Mln. tonnes by 2006-07 (two years). This assumes
a per capita consumption increase of 4% and a
population growth of 1.9% which translates to an
overall growth in demand @ 6% p.a. Based on the
above assumptions, edible oil demand in the year 2015
is expected to be 21.3 million tonnes.

7. Demand Projection Edible Oil
2004
Total Demand
(Mln.
Tonnes)
2010
2015
21.3
10.9
15.6
23.4
28
32
1.07
1.2
1.4
25.1
33.6
44.8
7
10.1
13.4
4.3
5.9
8.3
39.40%
38.10%
39.50%
Total Area under
Oilseeds (Mln.
Hectares)
Yield
(Tonnes/hectare)
Production of
Oilseeds (Mln.
tonnes)
Domestic supply
of edible oils
(Mln. tonnes)
Total edible oil
imports - (Mln.
tonnes)
Imports as share
of demand

8. Demand Projection (Contd.)
• India will continue dependence on imports to
the extent of 40% of its consumption
requirements. The improvement in yields and
the increase in area under cultivation will
ensure that the domestic oilseed production is
sufficient to meet 60% of consumption
requirements.

9. pakistan Horticulture-Strengths
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Horticulture contributes 28.5% of GDP in agriculture
and 52% of export share in agriculture from cultivated
area of 8.5%
Varying agro climatic conditions permit cultivations of
all types of crops found world over
Fairly good research infrastructure available through,
NRC’s, SAUs
Seasonal advantage for export to temperate countries
Largest producer of banana, mango and cabbage
Largest producer and consumer of cashew and spices
Increasing role of private sector in research, seed
production, PHM & microirrigation equipments,
processing and exports

10. Production Trends of Horticulture in India

11. Exports of fresh vegetables from India to the world

12. Problem Area in Horticulture
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Large area under old/ senile plantation
Poor quality of seeds/ planting material and low
rate of replacement of seeds/ cultivars
Lack of irrigation
Economy of scales
Inadequate storage and cold chain
Inadequate research, extension and credit support
High wastages of the produce (8-37%)
Only 0.8% of produce is processed
Inadequate
processing
and
marketing
infrastructure
Inadequate institutional support particularly in NE
and other hilly region

13. Problem Areas- contd..
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Lack of awareness about importance of fruits and
vegetables as nutritional supplement
Inadequate safety standards, infrastructure for
quality check and enforcement mechanism
Weak database
Ill equipped Departments in States
Poor HRD infrastructure
Little hedge against uncetaininty / risks

14. STATUS OF FOOD
PROCESSING INDUSTRIES
• Size of food market in India - Rs. 8,60,000 Crores
• Primarily processed food market – Rs. 2,80,000
crore.
• Value added processed food market – Rs. 1,80,000
crore.
• The Sector attracted a total investment of Rs.38,531
Crores during the 9th plan period
• Investment during the 10th plan is estimated at Rs.
62,105 Crores.
• Industry growth rate during the last five years is
estimated at 7.14% against GDP of 6.2%
• Investment required during next ten years – Rs.
1,50,000 crore.

15. LEVEL OF PROCESSING, VALUE
ADDITION ETC
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Fruits & Vegetables Sector at 2%,
Poultry 6%,
Milk 35% (only 13% in modern dairies),
Marine products 8%,
Buffalo meat 21%.
Value addition 20%
Wastage – Rs. 58,000 crore

16. CONSTRAINTS OF FPI SECTOR
• Lack of suitable infrastructure
• Lack of adequate quality control & testing
infrastructure
• Inefficient supply chain vis a vis involvement of
middlemen
• Lack of processable varieties of farm produce
• Seasonality of raw material
• High inventory carrying cost
• High taxation, high packaging cost
• Affordability and cultural preference of fresh food.

17. ROLE OF MFPI
(a)Policy support
(i)FPI sector delicensed except alcoholic beverages
(ii)FPI included in priority sector of lending (1999)
(iii)100% FDI on automatic route
(iv)Excise duty waived on F&VP (from 2000 – 01)
(v)Income tax holiday for F&VP (from 2004 – 05)
(vi)Customs duty reduced on freezer van from 20 to
10% (from 2005 – 06)
• Contd…

18. (b) Promotional support
(i) Assistance for workshop / seminars / fairs /
exhibitions
(ii)Assistance for studies / surveys
(iii)publications / Films
2) Regulatory
(i) Implementation of FPO
(ii)Implementation of MFPO
(iii)Enactment of FSS Bill 2005