Commerce Min pondering bottled palm oil price cap adjustment

BANGKOK, 16 February 2011 (NNT) – The Commerce Ministry is mulling over an increase of the price ceiling for bottled palm oil to help shoulder entrepreneurs’ burdens while stern actions will be taken against those overpricing the product.

Commerce Minister Pornthiva Nakasai stated that consideration is being given to a possible price adjustment of palm oil, currently sold at 47 THB per one-liter bottle in compliance with the Department of Internal Trade (DIT)’s regulation. If given a green light, the move would relieve a large number of retailers of their suffering from losses of profits incurred by the price cap and the high production cost of the imported palm oil. However, the Minister noted that, in order for the price to be raised, the effect on consumers must be minimal.

Ms Pornthiva reported that the first quarter of the incoming imported palm oil of 120,000 tons would arrive in Thailand in early March, after which it would go through the refining process within three days and distributed to consumers immediately. As for the remaining portion of the import, the Minister said an evaluation would later be conducted on its necessity, adding that supplies of palm fruits would start being released into the market in March and the shortage situation is expected to improve by then.

Following reports of vendors found selling palm oil at as high as 70 THB per bottle, Ms Pornthiva said the DIT had been tasked with taking legal actions against them in a bid to prevent the public from being taken advantage of.