Thailand: Manufacturers vow to cap prices while costs stay manageable

• May 25, 2018

Major consumer goods makers have confirmed they will continue capping the prices of their products for the interim despite transport costs rising 5% on higher diesel prices. Commerce Minister Sontirat Sontijirawong said representatives from 10 manufacturers with whom he met Thursday have all pledged not to raise product prices temporarily, as higher diesel prices have yet to significantly impact their production costs. 
The manufacturers included Sahapattanapibul Plc, Berli Jucker Plc, Chia Meng Marketing Co, Morakot Industries, Ampon Foods, Patum Rice Mill and Granary Plc, and Green Spot Thailand. 
Referring to a report that manufacturers of hom mali fragrant rice would raise the price of 5kg packages to more than 300 baht per pack, Mr Sontirat said only premium-grade grains would see a price hike. 
In addition, the Commerce Ministry Thursday asked manufacturers to help supply their products to the ministry-initiated Thong Fah Pracha Rat low-priced shops and establish a Thong Fah low-cost corner. 
Mr Sontirat, who surveyed a fresh market Thursday to examine goods and food prices, said prices for goods and food remain unchanged and have yet to see increases. 
Aitthiphat Phukitchiraphon, general manager of Chysee Bameekiew Co, said higher cooking gas and diesel prices have no significant impact on the company’s production costs, adding that the impact is less than 1%. 
Mr Aitthiphat said the company has already talked with 4,100 branches nationwide to cap noodle prices for some time and avoid profiteering. 
Boonyarit Kalayanamit, director-general of the Internal Trade Department, said manufacturers have yet to ask for price increases, as most of them are well aware of the current economic conditions and market competition. 
Those who raise their product prices may lose market share, Mr Boonyarit said, warning that any manufacturers of daily-use products under the price control list who change product prices without informing the Commerce Ministry will be in violation of the 1999 Price of Goods and Services Act. 
The price control list covers essential items for daily use, such as food, consumer goods, farm-related products, paper, petroleum and medicine. 
There are 47 product items on the price control list, 205 items on the watch list and 11 items on the priority watch list. 
Bank of Thailand governor Veerathai Santiprabhob said the central bank will continue to monitor the oil price surge and inflation. 
Rising oil prices could add to both business and economic costs and affect consumption, Mr Veerathai said. 
Several factors, including improving economic growth and geopolitical risks in several countries, contributed to the jump in oil prices, he said. 
Thai Bankers’ Association Chairman Predee Daochai said the group needs more time to digest the impact of oil prices on the economy. 
Strong economic momentum is expected to continue for the rest of the year after a strong first quarter, he said. 

Source: https://www.bangkokpost.com/business/news/1472193/manufacturers-vow-to-cap-prices-while-costs-stay-manageable