InfoQuest, (June 17, 2019) -- According to Mr. Wanchai Sukhonthaphon, deputy spokesman of prime minister office, Prime Minister Prayut Chan-o-cha was satisfied with the price rise of fresh palm from 1.80 baht/kg to 3.20-3.50 baht/kg and of raw palm oil from 15 baht to 20 baht. The price rise was caused by government measures, such as using raw palm oil to generate power, and encouraging large trucks to use biodiesel B20.
"It is estimated that a consumption increase of biodiesel B10 and B20 may drive up the price of fresh palm to 4 baht/kg, reducing inventory of oversupplied raw palm oil from 400,000 tons to 300,000, which is close to original inventory of 250,000 tons."
In the name of supporting the policy of the Department of Foreign Trade, some department stores labeled palm oil as 10 baht per bottle. Actually the government only called for coordination in case of price rise of fresh palm, and consistence between price and actual cost, rather than producing trouble to consumers. It is illegal to sell products at a price lower than the cost, which distorts market mechanism and constitutes vicious competition.
"The prime minister hopes people to learn such a fact: if the price of bottled palm oil is lowered, then the price of palm oil will drop like in the past. Then refineries, which sell palm oil to department stores, will not be able to purchase palm fruits at a higher price. Farmers will suffer all these impacts, making all government measures a futile effort," Mr. Wanchai Sukhonthaphon said.
Source: InfoQuest, by Tanit Tongnok / Nisarat / Rachada, translated by Xinhua Silk Road
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
