Edible oil trade keen to tap Pakistan demand

India can significantly increase the export of its soybean meals to Pakistan once the infrastructure bottleneck is cleared, according to vegetable oil industry sources who formed a trade delegation under the aegis of the Solvent Extractors' Association of India (SEA) and have just returned from a visit to Pakistan to study that country's vegetable oil-oilseed complex and potential of bilateral trade between the two.

India can nearly double its export of soybean meals to around 1.5 lakh ton per year from the present figure of around 70,000 ton if infrastructure issue is improved, said B V Mehta, executive director of SEA.

Non-availability of railway rakes is the major hurdle, he added.

There is significant employment creation opportunity if traders are allowed to use road transport, felt the delegation.

In addition, Indian exporters can export technology to Pakistan on setting up rice bran oil refining plants, said A R Sharma, vice-president of SEA.

"Several Pakistan-based solvent companies have shown their interest in adopting know-how from Indian firms in setting rice bran oil refining plants and a concrete proposal is expected shortly," added Mehta.

A delegation from four Pakistani companies will be visiting India shortly to study the rice bran oil refining industry in India, he added.

Another trade delegation from Pakistan will be participating in a seminar on the rice bran oil sector to be organised by SEA in Delhi in May 2005.

Sharma emphasised the need to increase bilateral trade between the two countries by addressing concerns of both side and by identifying goods presently being imported from third countries which could be sourced from each other.

"Both Pakistani and Indian companies are importing goods from third countries which could have been supplied mutually. There is urgent need to solve problems relating to the relationship so that both the countries can mutually benefit from trade," added Mehta.

Presently, the bilateral trade between the two countries is $ 500 million only, he noted. The Indian delegation visited regional oilseed conference in Lahore organised by the All Pakistan Solvent Extractors' Association.