Palm oil price to face 2nd rise beyond 47 THB/bottle

BANGKOK, 31 January 2011 (NNT) – According to the Commerce Ministry, the price of bottled palm oil is likely to increase in line with the higher prices of palm fruits and crude palm oil.

The Ministry of Commerce reported that the palm oil price still continues on the uptrend while the shortage problem is worsening, possibly forcing the price of bottled palm oil to undergo another rise after its first adjustment by 9 THB per bottle early this month.

The price of palm fruits has jumped from 7 THB per kilogram to 10-15 THB, resulting in an increase in the price of semi-purified palm oil from 46 THB per kilogram to 50-60 THB, higher than the ceiling set by the Commerce Ministry. The soaring palm fruit price is attributed to the flood problem late last year, which brought about shortage of the produce and premature harvest among farmers.

Thailand’s reliance on imported palm oil is also faced with obstacles as the global price is moving upward in line with the crude palm oil and para rubber prices. After factoring in the costs of transportation and management during the importing process, the price of bottled palm oil would stand at over 50 THB per bottle, as opposed to 47 THB at present.

In addition, the number of oil palm fruits in the country has been on a continual slump. It was recorded at 49,000 tons in December last year, lower than the target of 75,800 tons, while the figure in January has dropped further to 40,000 tons.