Less plam oil use sought in biodiesel
THE Commerce Ministry will ask the Energy Ministry to reduce palm oil used in biodiesel from B7 biodiesel to B5 biodiesel for a short run starting next month, following falling production due to the severe drought.
After chairing a committee meeting yesterday on the marketing of oil palm and palm oil, Commerce Minister Apiradi Tantraporn said that with the lower output of palm oil, the meeting agreed to reduce the proportion of palm oil used in making biodiesel for a period to ensure adequate supply for domestic consumption.
The measure will run until the next harvest coming up soon.
B7 is a blend of 7-per-cent palm biodiesel and 93-per-cent petroleum diesel, while B5 has 5-per-cent palm biodiesel.
Normally, the energy industry needs about 80,000 tonnes of crude palm oil for B7 production each month. However, production of B5 will demand only 60,000 tonnes of CPO.
About 150,000 tonnes of CPO are expected to be produced next month, with about 80,000 tonnes earmarked for domestic consumption, mainly for cooking oil production.
Thailand would neither face a shortage of palm oil nor a price increase, she said.
The meeting also agreed on a long-term measure to revolutionise the palm oil industry under a 20-year plan that would emphasise the improvement of farmers’ quality of life and the development of the whole supply chain for the palm oil industry.
This plan will be proposed to the National Palm and Palm Oil Committee in the near future.
Under the plan, in the primarily stage – the first five years – palm fruit farmers will learn to increase yield per rai and reduce cost of production.
For instance, Thai farmers will be encouraged to grow high-yield palm fruit from the current 3.3-3.5 tonnes per rai to 3.8-4.5 tonnes per rai – the same as Malaysia.
The government will also draw up a plan to balance supply and demand for palm nuts and promote innovation in the industry in order to add more value to palm fruit and generate higher incomes for farmers. The government will also promote the production of various by-products of palm oil to ensure sustainable incomes for farmers.
