Rise in palm oil price considered

However, the ministry insists that consumers will not face a shortage like last year’s since Thailand has buffer stocks to ensure enough supply for the domestic market for at least for two months.
Commerce Minister Boonsong Teriyaphirom said yesterday that palm-oil makers had asked for a price increase of Bt5 per 1-litre bottle but the ministry has not yet made a decision.
The ministry will carefully discuss the price hike with manufacturers and traders to ensure fair practices and an adequate supply for domestic consumption. The retail price of a litre bottle of cooking palm oil is controlled at Bt42, but producers want Bt47, citing the increase in the cost of palm nuts from Bt4 to Bt6 a kilogram, making crude palm oil go up from Bt30 to Bt35 a kilo.
The ministry has found that traders have 240,000 tonnes of crude palm oil in inventory.
The country will need about 120,000 tonnes for domestic supply each month, of which 80,000 tonnes is for consumer and industrial use and 40,000 tonnes for biofuel production.