ISLAMABAD: Experts underlined the need for inclusion of edible oil, vegetable ghee/cooking oil in negative list to compete with low-duty Indian products in the region.
According to the experts, a comparison of customs duty structure on the import of palm oil between the two countries shows that Indian industry has negligible duty structure advantage on edible oil as compared to Pakistani taxation structure.
They pointed out that huge subsidies being offered by the India to its agriculture and manufacturing sectors had to be addressed through the imposition of anti-dumping and countervailing duties on imports from India or similar/identical subsidies be granted to local sectors to make it competitive.
They argued that the Indian dominance over Afghanistan ghee and cooking oil market reflected the significance of subsidy offered to the sector in India. They declared that lesser/nil custom duty on palm oil imports and competitive tax structure on locally produced edible oil in India were promoting exports of the product. They feared that in the wake of grant of MFN status, Pakistan would have become dependent on India to fulfil its national consumption of this food item. They, however, pointed out that India and China being the largest importers of edible oil in the world, enjoyed concessional prices and cheaper freight rates. The international market prices are also disturbed at any given point of time besides many other factors when these two giants make purchases to build up their stocks.
They averred that in the international edible oil import market Pakistan was at 3rd to 4th position. Since the exports of ghee to Afghanistan and Central Asian Republics (CARs) are not materialised due to certain tariff and technical barriers, importers-cum-manufacturers-cum-exporters are handicapped and cannot compete with India in price negotiation,” they added.
