Arooj Zulfiqar

Self-sufficiency in peanut production can be a solution to reduce our edible oil imports, which cause the outflow of sizable foreign exchange annually, reports WealthPK. “Pakistan is an agricultural country with vast potential for oilseed production, yet it imports 80 to 90% of its edible oil from foreign countries to meet the domestic demand. This reliance on imports not only results in a significant outflow of foreign exchange but also leaves the country vulnerable to global price fluctuations and supply chain disruptions.

By increasing the domestic peanut production, Pakistan can reduce its import bill and improve food security,” said Nazakat Nawaz, Principal Scientific Officer at the National Agricultural Research Centre (NARC) while talking to WealthPK. He said, “Peanut seed has 40-50% oil. It is a very important oil all over the world and its production can be a game-changer for countries that rely heavily on imported edible oils. Pakistan is one such country, which has enormous potential to become self-sufficient in peanut production and reduce its reliance on imports.”

According to statistics from the United States Department of Agriculture, Pakistan’s peanut planting area in 2022/23 is about 150,000 hectares, with total production of 140,000 metric tonnes and an average yield of roughly 0.93 metric tonnes per hectare. Such a relatively lower yield needs to be improved, especially if Pakistan wants to produce more edible oil.

According to Nazakat, “There are many health benefits of peanut oil, but there is no commercial-scale production of peanut oil in Pakistan and most people are unaware that it may be used as an edible oil. So, we should explore this crop for oil production.”

“To achieve self-sufficiency in peanut production, we must focus on improving the productivity and efficiency of our agriculture sector. This can be achieved through a combination of measures, including improving access to credit and technology, providing better irrigation facilities, and increasing research and development in the agricultural sector,” he said.

“The main reason for the absence of commercial oil production units for peanut oil in Pakistan is the lack of research and development in this area. The government has not made substantial investments in research and development to promote the production of peanut oil. As a result, the farmers are not aware of the benefits of growing peanuts, and the industry has not developed.”

He suggested, “The government should invest in research and development to promote peanut production. This could include the development of high-yielding peanut varieties, use of modern farming techniques, and promotion of the use of peanut oil in the food industry.”

The NARC scientific officer further said, “Another reason is that most farmers in Pakistan own small landholdings, making it difficult for them to invest in the technology and infrastructure required for oil production. Small landholdings make it difficult to achieve economies of scale, which is crucial for the profitability of commercial oil production units.” “Absence of processing facilities is another reason for the lack of peanut oil production. The farmers have to sell their crops to intermediaries at low prices, which results in a loss of revenue for them.”

“The government should promote the establishment of commercial oil production units in the country. This could be achieved by providing incentives such as tax breaks, low-interest loans, and subsidies for the establishment of such units. Furthermore, the government can also provide technical assistance to the farmers to help them establish their own oil production units. The government should invest in the development of processing facilities to enable our farmers to process their crops locally. This would result in higher prices for farmers and also create job opportunities in the processing industry. Moreover, it would reduce the country’s dependence on imported edible oil,” Nazakat suggested.

Credit: Independent News Pakistan-WealthPk