SOHAIL SARFRAZ

ISLAMABAD: The ghee and cooking oil industry Wednesday informed Prime Minister Shahid Khaqan Abbasi that the unilateral ban imposed by Punjab Food Authority (PFA) on Banaspati/vegetable ghee has resulted in imposition of ‘technical barriers’ on the import of palm oil from Malaysia and Indonesia, which is a gross violation of WTO (TBT) regime and Preferential Trade Agreements (PTA).

According to the communication of Pakistan Vanaspati Manufactures Association (PVMA) to the PM here, the industry is manufacturing around 2.8 million metric ton of Banaspati to cater for the national consumption. The manufactures meet the Pakistan Standards developed in 1962 by Standards Development Centre (SDC) updated time to time and in field till date, under the license from PSQCA, Ministry of Science and Technology. The Pakistan Standards duly developed and endorsed under guidelines from Codex Alimentarius Commission, World Health Organization (WHO), and International Organization of Standardization (ISO) are further notified to World Trade Organization (WTO) and moreover mandatorily adopted by all SAARC Member Countries as per guiding principle of South Asian Regional Standards Organization (SARSO).

In this backdrop, under the articles of Constitution it is binding and obligatory to import/export, manufacture, keeping in stock and sale the ‘Banaspati’ in line with Pakistan Standards passed by National Assembly, without imposing any technical barriers to international or domestic trade and in furtherance to Pakistan’s commitments/agreements inked with regional/international organizations and trade partners.

In contravention to the stated facts, the Punjab Food Authority, Government of Punjab legislated its Act and rules/regulations/standards framed thereunder along with even announcing administrative action of putting a ban on ‘Banaspati’ in its territorial jurisdiction in violation of its own enactment. The uncalled for unilateral ban announcement, its advertisement and illegal enforcement by PFA is tarnishing the image of industry/palm oil and its business sentiment, besides creating unrest and creation of wrong perception amongst public and may deprive consumers from their ‘ right to choose’.

In relevant terms this infringement to national policy also equate to imposing ‘technical barriers’ on the import of palm oil from Malaysia and Indonesia, hence a gross violation of WTO (TBT) regime and Preferential Trade Agreements (PTA) inked by Ministry of Commerce, Government of Pakistan.

It said that the manufacturers import palm oil products to the tune of $ 1.6 billion per annum to meet national consumption and contribute over Rs 60 billion to national exchequer, consequently facilitating Pakistan’s exports as well to stabilize our mounting trade deficit.

Banaspati/vegetable ghee standards by virtue of its health benefits and consumers choice is supported by all leading and relevant national institutions such as National Institute of Health, AG’s Branch (Med Dte) Pak Army, PCSIR laboratory, Food Technology Research Laboratory, PARC, Ministry of Industries & Production, PSQCA, Ministry of Science & Technology to name a few.

In international arena the palm oil products (main ingredient of Banaspati/Vegetable Ghee) are consumed to the tune of over 60 million metric tons in food items such as milk, chocolates, bakery and confectionary items, cooking oil, mayonnaise, etc, in over 100 countries including EU countries, USA, Canada, Middle East, India, China for an instance.

In the light of foregoing PM’s timely intervention is imperative not only to resolve the issue at national level, but also upholding the ‘international commitments’ to safeguard the image of Pakistan.

Meanwhile, industry is willing and agrees to discontinue the hydrogenation process in practice for manufacturing of Banaspati to discourage the Trans-fats.

However the same is subject to approval by Standards Development Center (Agriculture and Food Division) and National Standardization Body or Standing Committee of National Assembly on Science and Technology.   

There shall be no restriction of blending ratio of soft and hard oils in manufacturing of Banaspati. It is at the discretion of manufacturer to assess the availability and affordability of soft oils and their ratio of blending keeping in view many other manufacturing compulsions, but in all cases the end product must meet the notified/developed Standards of Banaspati in field. 

The Scientific Panel of PFA and Scientific Panel of PVMA shall hold a joint session  immediately to remove any scientific/technical inconsistencies raised in the meeting between the two sides.

The industry has already conveyed and reiterates that mandatory blending ratio as proposed by PFA Scientific Panel is unconstitutional, illegal in the light of PFA Act itself and other prevailing laws of land. Moreover the said proposal not only deprives consumers from their ‘right to choose’ but also grossly against Public and National interest in monetary terms.

PVMA further suggests being imperative that inputs from Malaysian Palm Oil Board (MPOB), Govt. of Malaysia, Indonesian Refiners Authority (GAPKI), Govt. of Indonesia, World Trade Organization (WTO), International Organization of Standardization (ISO) and World Health Organization (WHO) may also be obtained prior to unilaterally enforcing any blending ratio, which are repugnant (Technical Barriers to Trade) to International Commitments and Agreements to them Pakistan is signatory, industry added.