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Palm oil industry wants price standards

Palm oil refiners have urged the government to set price standards to secure the industry and avoid future shortage.

Asanee Mallamphut, president of the Palm Oil Refinery Association, said domestic prices should be in line with global ones, similar to the way gasoline sales operate, by considering costs at every step of production from the farm to crushing and refining.

The costs include palm nuts, value-added tax, wholesaling and retailing, packaging, crushing and refining.

The standard should ensure fair prices for consumers and help manufacturers plan production. The appropriate price formula should be announced to allow consumers monitor it closely.

Currently, there are 250,000 tonnes of palm oil in stocks while average monthly demand is about 120,000 tonnes.

The crude palm oil price at refineries is 30-31 baht per kilogramme while the government controls the retail price at 47 baht per litre but the actual price has dropped to around 42 baht.

The Agriculture Ministry plans to increase oil palm production by 32% to 13.1 million tonnes next year.

Officials also want to expand palm plantation areas over the next five years by 3 million rai to reduce oil imports.

Source: Bangkok Post

ThaiVest Editorial Team

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