Suphajee, Varawut fast-track task force to tackle plastic pellet shortage

Thailand’s industrial sector is starting to feel the impact of unrest in the Middle East, with one of the clearest signs being a shortage of plastic pellets, a key raw material used across supply chains from medical supplies to packaging and plastic bags.

Industry Minister Varawut Silpa-archa said the plastic pellet shortage was becoming increasingly severe, with domestic supplies beginning to shrink and raw materials becoming harder to source.

He said the Industry Ministry had been invited by Commerce Minister Suphajee Suthumpun to join urgent talks aimed at mapping out measures to manage the problem, with the main goal of maintaining price stability and minimising the impact on the public.

 

Joint task force to oversee the whole system

Varawut said the meeting had agreed to set up a multi-agency task force comprising the Industry Ministry, Commerce Ministry, Public Health Ministry and Interior Ministry.

The task force will work proactively with the private sector and operators in the plastics industry, with its main mission focused on gathering in-depth information, including the actual production cost structure, plastic pellet stock levels in the system, and distribution and pricing behaviour.

“This is to identify the real causes behind the price increases and prevent opportunistic profiteering during the crisis, especially in essential goods linked to people’s daily lives,” he said.

Crisis reveals an opportunity to push recycling

Varawut said the crisis had also exposed a structural weakness in Thailand’s economy, which still relies heavily on virgin raw materials from overseas, despite the country generating large volumes of plastic waste.

Thailand currently produces around 2.7 million tonnes of plastic waste a year, but only 25% is recycled, which remains low compared with its actual potential.

“This is an important opportunity for Thailand to accelerate the transition by systematically promoting recycling, turning waste back into recycled plastic pellets to replace virgin raw materials, reduce import dependence and strengthen long-term industrial security,” Varawut said.

He added that recycling is key to helping industry reduce the cost of new raw materials.

Clear goal: contain costs and keep prices in check

The Industry Minister stressed that if the government can ensure sufficient raw material supplies at a reasonable cost, it will ease pressure on manufacturers to raise product prices, which would directly help contain the cost of living.

He said the task force would urgently hold talks with producers, importers and distributors to set out clear operating guidelines on production, imports, product distribution and systematic price supervision.

Suphajee says greater certainty would help market oversight

Before chairing the meeting with officials on how to manage plastic pellets, Suphajee said that if certainty emerged after the United States announced a two-week ceasefire with Iran, it would help authorities monitor upstream goods more effectively.

Asked whether this would make transport and logistics more fluid, she said the ministry had already been closely monitoring the situation, particularly for controlled goods, to assess whether supplies were adequate and how costs were moving so that management measures could be improved.

She said that if a ceasefire did materialise, it would be positive. For now, authorities still needed to examine stock levels and product costs, particularly for essential consumer goods under price controls.

Suphajee added that the plastic pellet meeting had been convened because plastic pellets were only recently added to the controlled goods list on March 25. The government therefore needed to discuss with operators how much stock remained and why prices had risen so sharply in recent weeks.

She said it was understandable that shortages had forced businesses to import more raw materials, but stressed that oversight of plastic pellets could not be handled by the Commerce Ministry alone and required close coordination with the Industry Ministry.

Asked about current stock levels, Suphajee said further discussions were needed because plastic pellets come in many types, not just one category.

She added that Thailand also needed to promote greater recycling of plastic pellets, given that the country generates a large amount of plastic waste but currently recycles only 20%.

Commerce and Industry ministries tighten long-term oversight

In the longer term, the Commerce Ministry will work closely with the Industry Ministry to monitor both the volume and pricing of plastic pellets to prevent shortages and market distortion.

Amid mounting pressure from the energy crisis and global geopolitical tensions, accelerating a circular resource system through recycling is no longer merely an option, but is increasingly becoming a key strategy that will shape the future competitiveness of Thai industry.