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 2004Total Demand (Mln. Tonnes)2010201521.3 10.915.623.428321.071.21.425.133.644.8710.113.44.35.98.339.40%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 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, NRCs, 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 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.. 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 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