BANGKOK, Jan 20 — The cabinet at its weekly meeting today resolved to import raw palm oil from Malaysia as proposed by the National Oil Palm Policy Committee to prevent a domestic shortage, according to Deputy Agriculture and Cooperative Minister Amnuy Patisae.
Mr Amnuy said that without importing emergency supplies of raw palm oil from Malaysia, Thailand will experience a shortage next month.
The import would avert a shortfall in serving the local demand of about 200,000 tons.
The Public Warehouse Organization will allocate the imported product to the private sector and the government will guarantee the price of local palm nuts at five baht per kilogram to protect Thai farmers from being negatively impacted by bringing in a supply from abroad.
Before the cabinet resolution, Somporn Sriphet, head of an oil palm growers organization, petitioned Prime Minister Prayut Chan-o-cha to oppose the move.
He said he doubted the predicted shortage and that local oil palm nut yields would increase next month.
"In October 2014, the palm oil stock amounted to over 340,000 tons. How can as much as 270,000 tons disappear? The oil remains available in markets as usual. So, I don't understand why the Department of Internal Trade wants to import up to 50,000 tons despite the fact that more ripe palm nuts from farmers will start to reach markets. This will certainly result in an oversupply of palm oil," Mr Somporn said. (MCOT online news)
