Monday, September 28, 2020

DIT asks firms manufacturing sugary drinks to cut prices

Feb 11. 2020
DIT deputy director-general Prayoth Benyasut
DIT deputy director-general Prayoth Benyasut
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By The Nation 

The Department of Internal Trade (DIT) has asked manufacturers of sugary drinks to cut prices by Bt2-3 to reduce the burden on people.

DIT deputy director-general Prayoth Benyasut said the department had issued a letter to companies asking them to cut prices after a number of brands raised prices by more than Bt10 per bottle.

“This price adjustment followed the Excise Department’s sugar tax, which took effect on October 1 last year,” he explained. “We recently received good news that some manufacturers of sugary drinks have reduced prices by Bt2-3 per bottle.” 

He said a weakening baht may not cause manufacturers of the drinks to increase product prices though if the currency weakens by a further Bt1 per dollar, importers will have to buy the products at a higher price.

“During the prolonged baht appreciation, no company issued a letter saying they would reduce their product prices, so we will not allow both product and raw-material importers to increase prices, except in the case that costs have increased significantly,” said Prayoth.

He said manufacturers seeking to raise prices must first take into account a number of factors, including a weakening currency, the diesel fuel price, energy prices, the minimum wage, taxes, and other costs.

“We will not allow an increase in prices if the weakening currency causes imports to be more expensive but other costs are still at a low level,” he added.

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