The Ministry of Commerce has suspended palm oil exports to bolster emergency reserves while urging retail stores to keep bottled palm oil prices stable.
Commerce Minister Pichai Naripthaphan stated that the local price of fresh palm nuts has risen due to a decrease in supply, prompting the Department of Internal Trade to impose an immediate ban on palm oil exports to ensure sufficient stock levels.
The department may also consider capping the price of bottled palm oil or reducing its use in biodiesel production to free up more for consumer consumption.
According to the Thai Wholesale and Retail Trade Association, the price of bottled palm oil recently increased by 10 baht per liter, surpassing 50 baht, due to higher fresh palm nut prices, which have risen to 8-9 baht per kilogram amid the dry season.
If bottled palm oil prices escalate excessively, the ministry might contemplate imports, although it clarified that no imports are needed at this time.
The ministry is actively seeking cooperation from vegetable oil factories and wholesale and retail outlets to keep the selling price of bottled palm oil at or below 50 baht per liter. It may also suggest reducing the percentage of palm oil used in biodiesel production.
Goranij Nonejuie, deputy director-general of the Department of Internal Trade, indicated that the department is closely monitoring palm oil production as supply diminishes due to drought conditions.
Department officials met with oil extractors and refiners this week, urging them to oversee fresh palm nut prices and manage palm oil stock levels to ensure they meet market demand.
Current palm oil reserves in the country are approximately 200,000 tonnes, which should last until January, when the new season begins, the department reported.
The department has requested that extractors and refiners refrain from exports until production normalizes, which is anticipated by January.
Additionally, it has urged wholesale and retail stores and bottled palm oil producers to keep prices steady, which they have agreed to do. The government plans to implement promotions to help reduce costs for consumers.
“The price of bottled palm oil currently ranges from 43 to 48 baht per liter,” stated Mr. Goranij.
“Wholesale and retail stores are committed to maintaining prices for as long as possible, but if production costs rise, they may adjust prices accordingly, provided they submit cost impact details to the department for review.”
Consumers are encouraged to report unfair pricing or practices to the department’s hotline at 1569 or their provincial commercial offices.
This year, Thailand has exported 850,000 tonnes of crude palm oil, with India being the primary export market, followed by China.
