Edible oil Industry Pakistan

Vegetable Ghee and Cooking Oil Industry in the beginning was established in the private sector
but it was nationalized in 1973 in Pakistan. Out of 26 factories, 23 factories were nationalized
and put under the control of Ghee Corporation of Pakistan (GCP). Raw material for vegetable
ghee industry is imported because local raw material in not sufficient.
These factories are located at Karachi, Hyderabad, Sukkur, Nawabshah in Sindh. Rahim Yar
Khan, Bahawalpur, Lahore, Multan, Faisalabad, and Rawalpindi in Punjab. Nowshera, Haripur
and Dargai in Khyber Pakhtunkhwa, and in Dera Muraad Jamali and Quetta in Balochistan.
There are a few factories in the capital of Pakistan, Islamabad.
The industry is now entirely in the private sector after privitisation. It comprises 160 units in
organized and unorganized sector. The installed capacity is 2.7 million tones.

Edible Oil industry Current:

The edible oil industry consists of three segments:
1. Premium Segment:
This group comprises of six companies which have formed an oligopoly.
This group includes:
i. Dalda
ii. Seasons canola
iii. Habib
iv. Soya Supreme
v. Eva
vi. Foreign brands
2. Popular Segment:
This group includes:
i. Kisan
ii. Kashmir
iii. Manpasand
iv. Suf
v. Meezan
vi. Rafhan
3. Lower segment
This group includes:
i. Loose oil
ii. Family
iii. A-1
iv. Gulab
v. Zaiqa
vi. Sultan
The Market share of overall oil industry:
1. Non branded oil has 69% market share
2. Dalda 9%

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Habib 7%
Soya supreme 4%
Tullo 3%
Foreign brands 5%
Eva 2%
Seasons canola 1%

Market share of premium segment:

The leader of this segment are:
1. Dalda 25%
2. Habib 20%
3. Soya supreme 16%

Edible oil is the blend of various seeds oil these seeds include:

Cotton Seed
Soya beans
Sunflower seeds
Castor seeds

Manufacturing Process:
The procedure that is adopted by all manufacturers of edible oil consists of 4 steps:
Firstly, blending of different oils in different quantities.
Then refning the blended oil
Then packaging
And fnally marketing and sales

Source of edible oil:

Pakistans main source of edible oil is cotton seed. The major oilseeds include
traditional crops like cotton, rapeseed, canola and mustard. On the other hand,
nontraditional crops such as soybean, sunflower and safflower. There are two types
of crops rabi crops and Kharif crops:
1. Rabi crops:
These include rapeseed, mustard, linseed, sesamum, sunflower and
safflower.
2. Kharif crops:
Include cottonseed, ground nut and soybean.
The main edible oil consumed in Pakistan are:
1. Palm oil
2. Rapeseed and mustard oil

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Cotton seed oil

Soybean oil
Sunflower oil
Canola oil

Edible oil Availability in Pakistan

Domestic production has been fluctuating for the last couple of decades. These
fluctuations are due to indigenous marketing, low support price and high cost of
production which is making these crops non proftable to the farmers. Only
sunflower has shown some positive results in area and production compared to the
other oil crops.
In domestic production, major share comes from cottonseed contributing 75% of
local production. Rapeseed, mustard and canola contribute 15%, whereas,
sunflower soybean, safflower and corn contribute to the remaining 10%.
If we compare the demand and supply of the edible oil, there is gap between the
demand & supply which has been flled with edible oil imports. Pakistans edible oil
import bill increased 1608 times between 1995-96 and 2008-09. Since 1999-2000,
the import bill grew by 11.1% on average till 2008-09. One policy to counter the
increasing imports bill of edible oil could be the tariff policy. It was found in a study
that tariff had signifcant impact on banaspati edible oil household consumption,
however, consumption of oil seeds were not changed.