WHILE Pakistan is an agricultural-centric economy, it relies on imports for approximately 89 percent of its edible oil needs and spends 3.6 billion U.S. dollars annually to fulfil the demand of around 5 million tons. Edible oil plays a crucial role in human nutrition, providing essential fatty acids necessary for growth and overall health. However, Pakistan has faced challenges related to edible oil availability and production. Let’s delve into the complexities of this issue and explore potential solutions. Due to the high cost of imported edible oil, most farmers had to resort to cheaper but unhealthy alternatives such as mustard oil because of the unavailability of good quality oil seeds in the local market. During the second decade after Pakistan’s independence, edible oil deficiency emerged due to population growth and specific cooking habits prevalent in South East Asian culture. In recent times, rapid urbanization and the rise of the fast-food industry escalated per capita consumption from 6 kg/year to 18 kg/year.
The factors affecting Pakistan’s edible oil situation are complex. They comprise: Uncertainty in market prices for farmers’ produce; Lack of a robust procurement system and import of low-quality palm oil at cheaper rates by the dominant Vanaspati Ghee Industry, hindering domestic production. The impact of import dependency is that edible oil became Pakistan’s largest food import commodity, ranking third after petroleum products and machinery. In 2020, imports reached a value of US$ 3.068 billion. If unchecked, this import trend could lead to an expenditure of Rs 757 billion by 2025. The domestic production gap is that during 2019-20, domestic edible oil production stood at 0.554 million tons, covering only 13% of the total requirement (4.316 million tons). Pakistan imported 3.765 million tons (87%) of edible oil and oilseeds, spending Rs 474.77 billion (USD 3.068 billion).
Past efforts and challenges indicate that organizations like PEOC, GCP, NODP, and PODB aimed to improve the edible oil sector. However, inconsistent oilseeds policies, procurement system gaps, and unwise palm oil imports hindered progress. Some successful initiatives indicate: Oilseeds Promotion Initiative in Punjab (2017-18) motivated farmers to cultivate Canola and Sunflower. Subsidies (Rs 5000 per acre) and announced procurement prices (Rs 2500/40 kg) led to increased cultivation. Canola and Mustard acreage expanded from 296.2 thousand acres to 465.8 thousand acres. Sunflower cultivation declined due to discouraging prices (Rs 2000-2100/40 kg) during 2018-19. The Current Scenario is that in 2019-20, Canola and Mustard covered 7,95,700 acres in Punjab. Higher dollar and international oilseed prices benefited producers.
In this challenging scenario, Pakistan’s “Iron Brother” China came to its aid. With the introduction of the Chinese canola variety into the market under Pakistan-China cooperation, the local farmers finally got a choice. Launched in 2013, the China-Pakistan Economic Corridor (CPEC) is a corridor linking the Gwadar Port in southwest Pakistan’s Balochistan province with Kashgar in northwest China’s Xinjiang Uygur Autonomous Region, which highlights energy, transport, and industrial cooperation in the first phase, while in the new phase expands to fields of agriculture and livelihood, among others. In line with the CPEC’s cooperation in agriculture, Chinese company Wuhan Qingfa Hesheng Seed Co. Ltd. and Pakistani company Evyol Group signed a memorandum of understanding in 2022 to help Pakistan become self-sufficient in edible oil through ample cultivation and efficient harvest of healthy canola oilseeds.
In the first phase, the Chinese company provided high-quality hybrid seed for cultivation, which not only increased per acre yield as compared to local oilseeds but also provided a healthy alternative to locals. In the second phase, the company is working on transferring technology to Pakistan, under which the harvesters have been imported from China, paving the way for smart agriculture practices in the country. Subsequent plans for the third phase involve importing oil-extracting machines, which will enable local farmers to extract the oil themselves for domestic consumption and commercial use. The Wuhan Qingfa Hesheng Seed company has developed two kinds of harvesting equipment that align with local cultivation and use habits. One of the equipment enables one-time harvesting, slashing harvest loss to eight to ten percent while the other offers a two-stage approach, which involves cutting the crop close to maturity and picking it up two to three days later, reducing loss to less than five percent, he added.
The technological advancement can boost yields by 20 to 30 percent, thereby enhancing farmers’ incomes and accelerating widespread adoption, compatible with existing harvesters in Pakistan. The harvesters will be further customized according to the requirements of locals, after feedback from local farmers and agriculture experts, following which the bulk import of the equipment will be made. CPEC’s role in elevating socio-economic standards by empowering farmers to embrace advanced technology cannot be underscored. Through technology transfer, CPEC empowers local farmers to not only reduce labour and costs but also increase their earnings, enabling them to lead more prosperous lives, besides giving benefit to society as a whole. According to the Ministry of National Food Security and Research, during the oilseed harvest season, there is a shortage of labour in the agriculture sector as almost all winter crops are being harvested during the time.
The available labour is also not so skilled and when they harvest the crop by primitive measure, the overall productivity of the sector gets affected. The adoption of Chinese agricultural technology represents a critical opportunity to modernize and transform the oilseed harvesting landscape in the country. Through effective technology transfer and adoption, the agricultural sector can overcome long standing challenges, boost productivity, and contribute to the nation’s food security and economic development. In Pakistan’s eastern Bhakkar district, Chinese agricultural technology has transformed the oilseed harvesting landscape. Newly imported oilseed harvesters from China efficiently and briskly carry out tasks, leaving local farmers in awe. These sophisticated machines are specifically designed for oilseed harvesting, addressing a critical need in Pakistan’s agricultural sector. Thus Sino-Pak friendship has once again transcended the levels of friendship and crossed into the realm of proving to be Pakistan’s true friend.
—The writer, Retired Group Captain of PAF, is author of several books on China.
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