International palm oil prices have stabilized, having hit record highs last year. Pakistan’s import unit cost for palm oil in December 2022 at $1,043/ton was the lowest in 21 months – having hit a high of $1646/ton six months ago. Import quantities have largely remained unchanged for 1HFY23 despite significant increases in retail prices. The jury is out on whether Pakistan is doling out the precious foreign exchange to satiate the demand of neighboring Afghanistan for palm oil as well – in addition to pulses and wheat.
Only eggs have increased at a higher pace since July 2021 than palm oil, among all major food items. In the last six months, international palm oil prices in the spot market have come down by 40 percent, whereas retail prices have proven much stickier, shedding only 3 percent. There is good reason for that, as imports in dollar terms may only have increased 13 percent year-on-year in 1HFY23 – that in rupee terms shot up by 75 percent.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.