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Thailand: Govt launches new palm oil strategies
The government is rolling out three measures aimed at tackling tumbling palm oil prices, including using it to produce electricity.
Speaking after a cabinet meeting on Tuesday, government spokesman Buddhipongse Punnakanta said the cabinet took note of the Ministry of Agriculture and Cooperatives’ proposed measures intended to help shore up palm oil prices.
He said 160,000 tonnes of palm oil will be used to produce power in order to reduce the domestic oil glut. The Energy Ministry was asked to proceed with the plan.
He said 160,000 tonnes of palm oil will be used to produce power in order to reduce the domestic oil glut. The Energy Ministry was asked to proceed with the plan.
Another measure involves increasing the ratio of palm oil used in B20 biodiesel fuel production from 6.5% to 7%, he said, adding that lorries alone could take up some 10 million litres of B20 biodiesel next year.
Mr Buddhipongse said the Energy Ministry will promote the use of B20 biodiesel fuel among lorry drivers.
A committee chaired by Wichai Phochanakij, the Internal Trade Department’s director-general, will follow up on and analyse the measures’ impacts, he said.
Palm oil fruit is currently trading at an average of 2.6 baht per kilogramme, and it is expected to reach 3.10 baht very soon, he added.
Mr Buddhipongse said the prime minister has also asked the Ministry of Agriculture and Cooperatives to propose measures to tackle the slump in rubber prices to the cabinet within a week.
The measures would touch on production costs, as well as price guarantees to help shore up rubber prices, he added.
Responding to reports that bottled cooking palm oil was smuggled into the country and sold in Thong Fah Pracharat stores in five southern provinces, Deputy Prime Minister Prawit Wongsuwon said those with such an information must report it to authorities immediately so officials can deal with it.
According to him, police and navy personnel have been asked to intercept goods smuggled into the country, including palm oil.
Source: https://www.bangkokpost.com/business/news/1575306/govt-launches-new-palm-oil-strategies