Palm oil exports halted as prices rise
Thailand’s Ministry of Commerce has imposed a ban on palm oil exports to boost emergency stocks amid rising domestic prices, which have increased to over 50 baht per liter due to dwindling fresh palm nut supply. To stabilize prices, the ministry may cap bottled palm oil prices at 50 baht per liter and reduce palm oil usage in biodiesel production
The price of bottled palm oil should be 43 to 48 baht per litre, officials say. (Photo: Ministry of Commerce)
The Ministry of Commerce has banned palm oil exports to increase emergency stocks, while requesting cooperation from retail stores to maintain the price of bottled palm oil. Commerce Minister Pichai Naripthaphan said the local price of domestic fresh palm nuts had increased as supply dwindled, causing the Department of Internal Trade to ban palm oil exports with immediate effect to ensure adequate stocks.
The department may also cap the price of bottled palm oil, or reduce the use of palm oil in biodiesel production to leave more for consumption.
The Thai Wholesale and Retail Trade Association reported the price of bottled palm oil had increased recently by 10 baht per litre, to more than 50 baht.
The uptick was attributed to higher fresh palm nut prices of 8-9 baht per kilogramme, as a result of the dry season.
If the price of bottled palm oil rises too high, the ministry may consider imports, though it said there is no need for them at the moment.
The ministry is seeking cooperation from vegetable oil factories and wholesale and retail stores to maintain the selling price of bottled palm oil at no more than 50 baht per litre.
It may also propose reducing the proportion of palm oil in biodiesel production.
Goranij Nonejuie, deputy director-general of the Department of Internal Trade, said it was monitoring palm oil production as supply shrinks because of drought.
Department officials met this week with oil extractors and refiners, asking them to monitor prices of fresh palm nuts and the management of palm oil stocks, ensuring they are at an appropriate levels and sufficient to meet market demand.
The country’s palm oil stocks are currently around 200,000 tonnes, which is sufficient until January, the beginning of a new season, the department said.
It sought cooperation from extractors and refiners to refrain from exports until production returns to normal levels, expected by January.
The department also requested wholesale and retail stores as well as producers of bottled palm oil to maintain prices, which they agreed to, while the government plans to organise promotions to reduce costs for consumers.
“The price of bottled palm oil is 43 to 48 baht per litre,” said Mr Goranij.
“Wholesale and retail stores are willing to maintain the price for as long as possible, but if production costs increase, they can adjust the price accordingly provided details of cost impacts are submitted to the department for consideration.”
He said consumers can report unfair practices or overpriced goods to the department’s 1569 hotline or provincial commercial offices.
This year Thailand has exported 850,000 tonnes of crude palm oil. India has been the main export market, followed by China.
Source Link : https://www.bangkokpost.com/business/general/2893076/palm-oil-exports-halted-as-prices-rise
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