DIT explains price movements of palm oil, soybean oil

[misskit]

BANGKOK, 15th February 2018 (NNT) – The head of the Department of Internal Trade (DIT) has dispelled rumors that raw palm prices across the nation are highly disparate and that overall value is moving up, by explaining the crop is at the end of its farming cycle.

DIT Director-General Boonyarit Kalayanamit has explained that as it is the end of the farming cycle for palm fruit, claims that its price is fluctuating widely from area to area are unfounded. On the general rise in the price of raw palm, he pointed out that the National Oil Palm Policy Commission recently decided to cut the country’s over 500,000 ton stockpile by raising exports. In December 2017, the nation sold 88,304 tons of palm oil to foreign buyers and another 69,000 tons in January 2018, together totaling 157,304 tons sold. In total, 372,126 tons was exported through 2017 to January 2018.

The Ministry of Energy was also responsive to the commission’s resolution and increased its production of bio-diesel from 4 million liters a day to 6 million liters while also expanding its stockpile of raw palm oil to 50,000 tons. The actions have drawn down raw palm stocks to 407,841 tons with expectations the figure will drop to 314,579 tons by the end of February, bringing it in range of the standard 300,000 ton stockpile that allows for acceptable pricing. The value of raw palm rose from 3.37 baht per kilogram in December 2017 to 3.44 baht in January 2018 and is now at 4.20 baht with raw palm oil now 21.50 baht per kilogram and rising. The DIT head also noted that any discrepancy between palm prices in the south and central regions was due to central region growers being near processing facilities, lowering transportation costs.

On the import of soy beans, Boonyarit explained that domestic production was recently unable to meet demand by the cooking oil industry, food industry and animal feed industry. The government currently imports 2 million tons of soy bean each year and maintains a quota agreement with the World Trade Organization in which six associations and 18 companies can receive the imports at a tax rate of zero percent. Soy beans imported outside of the quota are taxed at a rate of 80 percent. Organizations under the quota are obligated also to buy up domestically grown soy bean at market price but above a set minimum.

The DIT director-general pointed out that all the nation’s soybean oil currently utilizes just 15 percent of its domestic production with 40 percent of the oil used industrially and the other 60 percent used by consumers. He said a rise in the retail price of palm oil to near that of soybean oil could shift consumption to soybean oil. Currently, palm oil retails for 30-33 baht per liter while soybean oil retails for 39-41 baht per liter, putting palm oil 9-11 baht below soybean oil and dissuading consumers from making the switch.

National News Bureau Of Thailand | DIT explains price movements of palm oil, soybean oil

[sabang]

DIT Director-General Boonyarit Kalayanamit has explained that as it is the end of the farming cycle for palm fruit, claims that its price is fluctuating widely from area to area are unfounded.

You need to learn to decipher Thai, dear reader. So then- Why are the prices for palm fruit fluctuating widely from area to area?
Is there not a government mechanism in place, to prevent the middleman regularly ripping off the farmer, as is normal in this country?
Who is/are the main beneficiary(ies) of this Corruption and shady dealing? Broad Hint- it's not Thaksin.

[david44]

whose the big wheel Palm Olive?

[sabang]

A Holy Man from the South.