Self-reliance Policy in Edible Oil and the Social Profitability of Pakistan’s Oilseed Crops

Like many other South Asian countries the advent of the green revolution has led to increased productivity of many cash and food crops in Pakistan and a noticeable movement towards food-sufficiency, especially in case of wheat. One unintended outcome of these achievements has been the neglect of the oilseed and edible oil sector at all levels of research and government. With a widening in the edible oil deficit, Pakistan has become increasingly dependent on imported edible oils. At an annual average growth rate of9.6 percent, Pakistan’s edible oil imports have risen from 466.94 million kg. in 1980-81 to 1045.95 million kg. in 1991-92. By contrast the import costs during this period have risen from Rs 2.62 billion to Rs 10.2 billion showing an annual growth rate of nearly 13 percent. This unhappy state of affairs has been the result of not only of the rapidly accelerating pace of edible oil demand but also of deceleration in the growth rate of domestic production [Government of Pakistan (1992)].