Thailand
Thailand: Amid rising trend, bottled palm oil may hit 70 baht per litre
Consumers are fretting about bottled palm oil being sold at prices higher than the 55 baht per bottle set by the Department of Internal Trade.
Aone-litre bottle of palm oil sells at 59 baht in supermarkets of department stores. Some brands are in short supply, as a result some stores are allowing a person to buy no more than six bottles.
Meanwhile, the retail market and local shop price is in the range of 62-67 baht.
The price spike is mainly due to the rising price of crude palm oil, which is the main cost of producing bottled palm oil. Currently, it sells at 56-57 baht per kilogram, which is 12-13 baht per kg more expensive than the world market price, even though Thailand is a major grower of oil palm fruit.
In comparison, palm oil sells in Malaysia at only 5,425 ringgit per ton, or 43-44 baht per kg.
Crude palm fruit last week moved up to 11.70 baht per kg.
The latest oil palm price on Monday hit 12 baht per kilogram, an unprecedented high. At the same time, prices of chemical fertilizers and pesticides, as well as the prices of consumer goods, have also gradually increased.
Palm oil price is expected to shoot up further until next month. If the cost of crude palm oil remains at 56-57 baht, the price of bottled palm oil will be more than 70 baht per litre.
Though they are happy about the 12 baht per kg palm price, the farmers are seeking a price guarantee in the long term at 5-7 baht per kilogram to balance the price of fertilizers, pesticides and various tonics used for palm oil.
Commerce Minister Jurin Laksanawisit has asked the Department of Internal Trade to call palm oil operators and discuss solutions, as the authorities are afraid if the price is fixed for too long, manufacturers may halt production until the palm oil market faces a supply shortage, eventually pushing up the prices.
Published : January 24, 2022
By : THE NATION