- Imports, low domestic productivity, outdated practices, lR&D are the primary challenges that must be addressed
Pakistan’s edible oil crisis is one of the most pressing challenges facing the country’s economy and food security today. Despite being an agricultural nation with vast arable land, Pakistan imports nearly 90% of its edible oil requirements, making the country highly vulnerable to international price fluctuations and supply disruptions. The rising cost of edible oils, particularly palm, soybean, and sunflower oil, has had a direct impact on household budgets, with families spending an increasing portion of their income to meet basic dietary needs. Without immediate reforms, the situation threatens both economic stability and public health.
The roots of the crisis can be traced to multiple structural deficiencies. Domestic oilseed productivity remains exceptionally low due to outdated farming practices, lack of access to high-quality seeds, insufficient mechanization, and poor water management. Farmers often prioritize staple crops like wheat and sugarcane over oilseeds because of higher guaranteed returns and government support, leaving oilseed cultivation neglected. Furthermore, the absence of robust research and development (R&D) in oilseed farming prevents the introduction of high-yield varieties, modern cultivation techniques, and post-harvest management, keeping productivity well below potential.
The country’s dependence on imports has long-term economic consequences. Every year, billions of dollars are spent importing palm oil, soybean oil, and sunflower oil, contributing to trade deficits and exposing Pakistan to the volatility of global markets. Price shocks in international markets are immediately transmitted to domestic consumers, often resulting in sudden surges in edible oil prices. These sudden hikes disproportionately affect low- and middle-income households, further exacerbating food insecurity and financial stress.
Another factor contributing to the crisis is the limited cultivation of oilseed crops such as canola, sunflower, and soybean within the country. Traditional practices, coupled with insufficient extension services and lack of farmer awareness, have prevented the widespread adoption of modern cultivation techniques. Without systematic support in the form of subsidies, training programs, and access to modern equipment, small- and medium-scale farmers remain unable to compete with imported oil products, which are often cheaper due to economies of scale and government incentives in exporting countries.
The role of research and innovation cannot be overstated. Countries that have successfully reduced edible oil import dependence have invested heavily in R&D for oilseed productivity, post-harvest management, and efficient processing technologies. In Pakistan, investment in agricultural R&D remains below 0.3% of GDP, far behind regional competitors such as India, China, and Indonesia. A comprehensive national strategy that integrates universities, research institutes, agritech startups, and government agencies could facilitate the development and dissemination of high-yield oilseed varieties, mechanization, and modern processing techniques.
Improving the domestic oilseed supply chain is equally critical. Adequate storage facilities, cold chains, and mechanized processing plants are necessary to reduce post-harvest losses, which currently account for a significant portion of potential oil output. Training programs and extension services can educate farmers on optimal sowing times, crop rotation, soil fertility management, and integrated pest management. Such measures would not only boost productivity but also encourage more farmers to engage in oilseed cultivation, thereby gradually reducing import dependence.
Policy support plays a decisive role in addressing the crisis. The government can incentivize local production through interest-free loans for oilseed farmers, tax breaks for domestic processing units, and tariffs that protect emerging local industries from cheaper imports. Collaboration with the private sector can foster investment in modern processing plants, supply chain logistics, and product innovation. Simultaneously, awareness campaigns highlighting the health benefits of locally-produced oils over imported alternatives can help create a market preference that supports domestic producers.
The environmental aspect should also be considered. Increasing domestic production of oilseeds reduces dependency on palm oil imports, which have been criticized for contributing to deforestation and unsustainable farming practices in exporting countries. Promoting sustainable and organic farming practices within Pakistan can also create opportunities for premium products, niche markets, and export potential, while enhancing local food security.
In conclusion, Pakistan’s edible oil crisis is a multifaceted problem that requires an integrated, research-driven approach. Dependence on imports, low domestic productivity, outdated practices, and lack of R&D are the primary challenges that must be addressed. By investing in agricultural research, modernizing cultivation and processing techniques, strengthening supply chains, and providing targeted policy incentives, Pakistan can gradually reduce its reliance on imports, stabilize prices, and secure food security for its population. Without urgent reforms and innovation-driven strategies, the edible oil sector will continue to strain the economy and burden households across the country.
The author is a dedicated PhD candidate at Sindh Madressatul Islam University, Karachi, actively engaged in advanced research in her field of expertise. She is committed to contributing to academic knowledge and practical solutions through her scholarly work.