Thu, August 11, 2022

business

Ministry asks operators not to raise product prices


The Commerce Ministry asked operators to refrain from increasing product prices so that the burden won’t fall on consumers.

Commerce Ministry Jurin Laksanawisit said on Tuesday that guidelines to control product prices must take into consideration two factors – benefits to farmers and benefits to consumers.

However, the two factors contradict each other because farmers want palm prices to be as high as possible while consumers want the palm oil price to be low.

Therefore, he said, the ministry must “manage a balance” so both sides won't be hit hard. Meanwhile, operators must also be able to conduct business profitably.

Jurin said the palm price is currently 9 to 10 baht per kg while the ministry should push for a 700 per cent increase in exports to achieve a better price. But consumers would have to pay a higher price if the cost increases, he noted.

“The ministry must find a way for operators to be able to continue their business with not too high a profit so consumers will not have to shoulder too much of a burden from the increasing palm oil price," he said.

“One way is to reduce profit and the cost-retail price proportion, so the Commerce Ministry has come out with a price structure.”

The ministry is therefore asking operators not to charge higher than the regulated price.

The oil palm price per bottle on Monday was 62-65 baht or 64 per bottle on average. The price according to the structure is not more than 68-69 baht.

As for the increasing animal feed costs, he instructed the ministry’s permanent secretary to meet with animal feed farmers, livestock farmers and operators as they are yet to find a conclusion.

Animal feed farmers want the corn price to be as high as possible, while livestock farmers want the price to be low so pork, chicken and eggs don’t cost more.

As for the oil price, the National Energy Policy Committee is considering measures so the impact on the public would be as low as possible.

Meanwhile, the ministry on a case-by-case basis may allow a price increase of some of the 18 products and services it had put a price cap on, so that some manufacturing processes do not come to a halt.

 

Ministry asks operators not to raise product prices Ministry asks operators not to raise product prices Ministry asks operators not to raise product prices

Published : April 27, 2022

By : THE NATION