Thailand: Commerce Ministry ready to haggle

• Apr 16, 2020

The Commerce Ministry is scheduled to meet manufacturers, modern trade operators and department stores on Thursday to ask for cooperation on lowering prices of essential goods for consumers, with a focus on food and daily use products to reduce the cost of living for people hurt by the pandemic.

Local diesel prices, which is a key production and transport cost, have dropped and the world’s economy remains in a slowdown, said Prayoth Benyasut, deputy director-general of the Internal Trade Department.

Retail diesel prices over the past few months have dropped continuously, with 11 price adjustments in March alone, reducing production costs for manufacturers by 1-3%, said Mr Prayoth.

Products subject to price reduction are likely to be announced later this week.

He said for any items that fail to see a significant decrease in prices, the ministry will ask for cooperation to organise promotional campaigns with deep discounts to help alleviate consumers’ financial burden.

Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office under the Commerce Ministry, said with domestic oil prices dropping for 2-3 consecutive months, the office is prioritising getting goods manufacturers or transport providers to lower goods prices and transport or delivery fees to help consumers and lower living costs.

“Goods makers and transport providers raise the prices of goods and their fares immediately whenever oil prices rise,” she said.

“But once the oil prices drop, they do not cut their prices immediately.”

Ms Pimchanok suggested the manufacturers of goods lower prices in keeping with lower production costs.

If they fail to do so, they should come up with special sales promotions or increase the size of products for consumers flailing in these troubled times, she said.

Source: https://www.bangkokpost.com/business/1900700/commerce-ministry-ready-to-haggle