The production of vegetable ghee and edible oil recorded a modest increase in the last few years as demand remained strong and edible oil refining received new investment.

Cooking oil output rose from 311,000 tonnes in FY11 to 323,000 tonnes in FY12, and to 355,000 tonnes in FY13. Vegetable ghee production went up from 1.092 million tonnes in FY11 to 1.103 million tonnes in FY12, and to 1.145 million tonnes in FY13.

Manufacturers of oil and ghee say output would rise further during the current fiscal year and in the years to come as exports to Afghanistan under the manufacturing bond facility is to begin shortly, and local demand is becoming stronger on faster economic growth.

During the first five months of FY14, ghee production has already risen by 5pc to 475,000 tonnes, and that of cooking oil by 7pc to 150,000 tonnes.

Revenue officials say export of vegetable ghee and cooking oil is allowed under Duty and Tax Remission for Export Scheme (DTRE). At a meeting held in the last week of January at the ministry of commerce, it was decided that the scope of DTRE would be extended to exports to Afghanistan under the manufacturing bond facility as well.

Meanwhile, rising local demand for ghee and cooking oil is also facilitating new brands and creating space for different varieties and retail packaging.

“We call it sub-brandings; newer products in an already existing category,” says an official of Habib Oil Mills, makers of the Habib Cooking Oil, while boasting of about a dozen oil and ghee brands under the Habib umbrella.