BANGKOK, June 17 (TNA) – Prime Minister Prayut Chan-o-cha is satisfied that government measures have raised the price of palm nuts and would like the private sector to realistically price their bottled palm oil to prevent the distortion of market mechanisms.
Deputy government spokesman Werachon Sukondhapatipak said Gen Prayut was happy to see the price of raw palm nuts rose from 1.80 baht to 3.20-3.50 baht per kilogram and the price of raw palm oil went up from 15 baht to 20 baht per kilogram. He attributed the increase to government measures including electricity generation with raw palm oil and the promotion of B20 biodiesel for heavy trucks.
“The price of raw palm nuts is likely to rise to four baht per kilogram if the consumption of B10 and B20 biodiesel grows. Meanwhile, the excessive stock of raw palm oil drops from 400,000 tons to 300,000 tons which is close to the appropriate reserve level of 250,000 tons,” Lt Gen Werachon said.
Regarding reports that some department stores increased the prices of bottled palm oil by 10 baht per bottle claiming to respond to a policy of the Internal Trade Department, the deputy government spokesman said the government only asked operators to base the prices on costs when the price of raw palm nuts increased. The government did not intend to trouble consumers but loss-ridden prices were illegal, distorted market mechanisms and destroyed competitors, he said.
A discount on the prices of bottled palm oil would reduce the price of raw palm nuts because palm oil manufacturers could not buy palm nuts at a high price and that would affect farmers and government measures would be useless, Lt Gen Werachon said. (TNA)
