BANGKOK, Jan 21 — Thailand's Ministry of Commerce will import some 50,000 tonnes of palm oil from abroad as a reserve for domestic consumption, but gave assurances that the move would not affect palm nut and oil prices domestically.
Commerce Minister Gen Chatchai Sarikulya said that the imported palm oil would help to increase the quantity to meet the 150,000 tonnes needed each month.
However, he emphasised that the move would not affect the domestic price for raw palm coming into the market in March, as the import would be on a short-term basis, and the ministry would certify that stable prices would be set at no lower than five baht per kilogramme for the sale of raw palm oil.
There would be an adequate amount of oil palm for consumption during the coming period, he said.
The minister said he ordered the Internal Trade Department (ITP) to closely oversee the problem of some local markets which have a shortage of oil. He said that some business owners would see this as their opportunity to gain higher profit than usual to make a profit by raising the prices of oil palm.
Those found violating this regulations would be prosecuted under the law, he said.
Thailand's palm oil reserves have declined drastically since October, and are now less than 200,000 tonnes.
The short reserves have prompted the Commerce Ministry to import oil palm from abroad to prevent a domestic shortage.
Once the oil is imported, the ministry will ensure that the bottled palm oil remains at the ceiling price set by the ministry at Bt42 a bottle, by strictly managing the factories that produce them. (MCOT online news)
