Farmers and Palm Oil Producers Commit to Capping Bottled Palm Oil Prices
Farmers, extractors and palm oil producers promised Thailand’s internal trade department that they would try to keep the price of bottled palm oil between 64 and 66 baht/L.
Representatives of the three parties told the Department of Domestic Trade that it “can be done” at a meeting last week led by the head of the department, Wattanasak Sur-iam.
The department has sought the cooperation of the domestic palm oil industry to avoid having to consider banning palm oil exports or imposing an increase in their palm oil security stocks. , from 200,000 to 300,000 tons.
According to Wattanasak, the three parties have been informed that an export ban could be considered if palm oil stocks fall below 300,000 tons.
Palm oil extractors rushed to increase their stock of palm seeds, in anticipation of a price increase after Indonesia decided to ban the export of palm oil from April 28 .
Since May 5, the price of palm seeds, which are used to produce palm oil, has reached a new high of just over 12 baht/kg in Surat Thani and Krabi, two major producers of palm seeds. palm. A month ago, the average price was 10 baht/kg. The increase pushed the price of crude palm oil from 55-56 baht/kg to 59-62 baht/kg.
In reality, however, the price of bottled palm oil of all brands in stores has already increased to between 69 and 70 baht/L. Higher palm oil prices also pushed up the prices of other vegetable oils, such as soybeans and sunflower.