Thailand anticipates exporting 800,000 metric tons of crude palm oil this year to help stabilize local fresh palm nut prices.
Wattanasak Sur-iam, the director-general of the Internal Trade Department, noted an improvement in domestic fresh palm nut prices, now exceeding 5 baht per kilogram following a slump in April and May due to oversupply.
To address the surplus, the department plans to continue exports, aiming to balance the market and boost palm nut prices.
Thailand exported around 400,000 metric tons of crude palm oil in the first half of the year, with a similar volume expected in the second half, totaling 800,000 metric tons in 2024, consistent with the previous year.
Mr. Wattanasak expressed confidence in Thailand’s ability to compete globally in the palm oil market due to competitive pricing both locally and internationally.
Thai crude palm oil is currently priced at 33.25 baht per kilogram, slightly higher than the global market price of 32.72 baht per kilogram.
Domestic demand includes 110,000 metric tons for consumption, 120,000 metric tons for biodiesel production, and 800,000-900,000 metric tons for export, with India being a key market.
Thailand currently holds crude palm oil stocks of 300,000 tonnes. The depreciation of the baht is expected to benefit the country’s palm oil exports.
To maintain fair trade practices, the department issued guidelines for palm nut buyers and extraction plants, warning against artificial drops in palm nut prices, which could lead to severe penalties under the Price of Goods and Services Act of 1999.
Operators of extraction plants are required to provide daily reports to the department detailing fruit purchases, purchase rates, and oil extraction quantities to prevent market exploitation.
The department also mandated inspections to ensure fair practices at dumping yards and palm oil plants, protecting the interests of farmers.
Farmers were advised to harvest fully ripened palm nuts to secure better returns in a year where fresh palm nut production is estimated at 18 million tonnes and crude palm oil production at 3 million tonnes, maintaining levels from the previous year.
