Commerce Ministry Plans Palm Oil Management to Prevent Price Collapse

Prachachat•Economy•1d ago

Reader Briefing

Thailand's Commerce Ministry is proactively developing strategies to manage the upcoming palm oil harvest and ensure fair purchasing practices to prevent a market price collapse.

•The Department of Internal Trade is actively monitoring the palm oil situation in Surat Thani province.
•Plans are being made to manage the purchase of palm oil during periods of concentrated production.
•Concerns exist about potential price drops, prompting proactive measures from the ministry.
•The ministry is collaborating with agricultural councils and processing plants to ensure smooth operations and fair prices.

Overview

•The Department of Internal Trade visited Surat Thani province to monitor the palm oil situation.
•Officials held discussions with the Provincial Agricultural Council regarding palm oil management during peak production.
•Current purchase prices for palm oil range from 6.50-7.70 baht per kilogram, depending on oil content quality.
•Although this year's production is not expected to be as concentrated as the previous year, April-May remain peak production months.
•Palm oil extraction plants have been advised to plan machinery maintenance ahead of peak harvest to avoid processing delays.
•Discussions were held on allowing farmers to pre-register palm oil at weighbridges to manage traffic flow.
•The Ministry will continuously monitor and manage palm oil purchases to align with extraction plant capacity and ensure price stability.
•Provincial industry offices are developing an application to provide farmers with real-time data on processing plants, crushing capacities, and purchase information.

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Source: Prachachat (Original)

Key Quotes

Wittayakorn Maneenetr

"Regulation by setting purchase prices for both mills and weighbridges to align with crude palm oil prices, which last year were set at not less than 5 baht, is a measure that helps provide assurance during peak production."

การกำกับดูแลโดยกำหนดราคาการรับซื้อผลปาล์มทั้งโรงสกัดและลานเทให้สอดคล้องกับราคาน้ำมันปาล์มดิบซึ่งปีที่ผ่านมากำหนดให้รับซื้อในราคาไม่ต่ำกว่า 5 บาท เป็นมาตรการที่ช่วยสร้างหลักประกันในช่วงผลผลิตออกมาก

Key Entities

Organization

Department of Internal Trade(กรมการค้าภายใน)

The relevant government department responsible for monitoring and managing the palm oil market.

Surat Thani Provincial Agricultural Council(สภาเกษตรกรจังหวัดสุราษฎร์ธานี)

The local agricultural council participating in discussions about palm oil management.

Provincial Industry Offices(สำนักงานอุตสาหกรรมจังหวัด)

Provincial government offices involved in developing an application for palm oil farmers.

Place

Surat Thani(สุราษฎร์ธานี)ℹ️

The province in Thailand where the palm oil situation is being closely monitored.

Person

Wittayakorn Maneenetr(นายวิทยากร มณีเนตร)

Director-General of the Department of Internal Trade, who is leading the palm oil management efforts.