Thailand
Thailand: Oil palm farmers ask for retailer help
Oil palm growers have called for cooperation from retailers to abstain from launching any sale promotions for bottled cooking palm oil, as such programmes would push down farm prices for fresh palm nuts.
The growers also voiced support for the government’s policies to help shore up fresh palm nut prices.
“For almost a year, the farmers have suffered because of the price fall,” said Manat Puttharat, chairman of the Oil Palm Growers Federation. “Growers have lost an estimated 15 billion baht during the period.”
Due to massive supply, the price of domestic fresh palm nuts hit a 10-year low in April of 1.80 baht per kilogramme, far below growers’ production costs averaging 3.45 baht per kg last year and four baht per kg in 2017.
The government has spent about 2 billion baht to firm up prices and ease farmers’ hardship.
The higher prices of domestic palm oil are also due to lower crude palm oil stocks, which stand at only 250,000 tonnes from 300,000 tonnes earlier, thanks to the government’s measures.
The government has bought 160,000 tonnes of crude palm oil for power generation at the Bang Pakong plant of the Electricity Generating Authority of Thailand and is extending the amount to 200,000 tonnes.
The government is also promoting the use of biodiesel B10 and B20 in big trucks and the use of pure biodiesel (B100) in agricultural machinery.
Campaigners hold a sign in support of price increases in palm oil. The Internal Trade Department raised palm cooking oil prices by 10 baht last Thursday. PHUSADEE ARUNMAS
Thailand’s oil palm plantations span an estimated 5.09 million rai. The output of fresh palm nuts in 2019 is projected at 16.8 million, up 9% from 15.4 million tonnes in 2018.
Whichai Phochanakij, director-general of the Internal Trade Department, said that despite criticism the department is committed to calling on retailers to mark up prices of cooking palm oil to reflect higher costs, in part to help boost domestic oil palm prices.
“The department has been closely following the oil palm and palm oil situation to strike a balance in the country’s overall palm market,” he said. “The department’s foremost responsibility is not only to supervise the fairness to consumers, but also stabilise the prices of domestic farm product prices for farmers.”
According to Mr Whichai, pictures shared on social media showing certain leading retailers telling customers that they have to raise the prices of cooking palm oil from 24 baht to 34 baht per one-litre bottle are conveying misleading information, as the department has not forced them to raise the prices by 10 baht a bottle at once.
“The department wants to clarify that those retailers have been asked to cooperate to halt any sales promotion programme for a certain period, as the programme may draw others to follow suit and put more pressure on fresh palm nut prices back to 1-2 baht per kg as in the past,” he said.
“Palm oil for consumption amounts to about 1.1 million tonnes a year or about 40% of crude palm oil consumption. Any price competition will definitely hurt farmers.”
Source: https://www.bangkokpost.com/business/1696932/oil-palm-farmers-ask-for-retailer-help