Oil palm price hits highest level in three years due to lower output
The price of oil palm has shot up to Bt7.30 to Bt7.50 per kg, which is the highest in the past three years, said Chayodom Suwanrattana, president of the Oil Palm Growers Association of Thailand.
“The reason behind the price hike is that oil palm output this year is lower than normal, while the demand is still high,” he said.
“In the past few years, oil palm price was only Bt2 to Bt3 per kg, as a result farmers who had no capital to buy fertilizers or expand their plantations had lower output in the following years.
“Farmers’ income has not increased much despite the higher price, as lower output has meant they have less oil palm to sell,” added Chayodom.
“We expect that after the new year, the price will gradually go down as more oil palm will reach the market by then.”