Commerce Ministry tackles oil palm pricing

[rooster59]

Commerce Ministry tackles oil palm pricing

Tanakorn Sangiam

 

 

The Ministry of Commerce has stressed the government’s efforts to solve low pricing of oil palm kernels, bringing forward measures over the next two months to bring down the stock volume to a normal level.

 

The Department of Internal Trade Director General, Wichai Phochanakij revealed today the government has been working to resolve the low oil palm kernel pricing faced by farmers, with the Ministry of Commerce proposing palm oil stock rebalancing measures which were approved by the National Palm Oil Policy Committee on 1st November 2018, and later proposed to the Cabinet on 20th November 2018 to expedite the use of 160,000 tons of palm oil in stock for electricity generation at Bang Pakong power plant, promoting consumption in the energy sector, and re-balancing palm supply and demand in the country.

 

One of the factors leading to poor palm oil pricing is the warm climate causing palm fruit to become ripe prematurely, leading farmers to sell the produce to oil extractors resulting in higher costs and lower yields, while many farmers are speeding up the harvest at their farms to find money for tuition fees for their children as the new school term approaches.

 

The decision by the European Union to cancel the use of palm oil as a biofuel ingredient, and the increase in import tax by India which is the world’s largest palm oil importer also affected the pricing.

 

The Department of Internal Trade has been accepting registrations from crude palm oil producers to supply the Electricity Generating Authority for electricity generation from 2nd January to 1st March 2019. The campaign has reached the 160,000 tons goal. The EGAT has so far received 152,000 tons of palm oil, with 8,000 remaining to be shipped this month.

 

The department is also promoting the use of B20 biodiesel at 20 million liters daily. Related agencies are now working to issue B20 certifications for compatible car engines, encouraging manufacturers to produce more models compatible with B20, and providing a discount on B20 sales to be 5 baht per liter less than diesel oil, and providing tax discounts for biodiesel vehicles. These measures are expected to create more than 1,270,000 liters of palm oil consumption annually.

 

The DIT director general added that these measures will help bring down in-stock palm oil from 370,000 tons to a normal margin over the next two months, which will help stabilize the prices farmers receive in the future.

 

-- © Copyright nnt 2019-04-28

[owl sees all]

The price of oil palm nuts has plummeted to 3-20 baht a kg, from 8-50 baht in September 2016. And the farmer gets considerably less that these figures.

 

The wholeseller that we go to said that the cause is the government importing one million tonnes of oil for the last two years from Malaysia. As with most things here in Thailand. Getting to the bottom of things and finding out the truth is very difficult. All surrounded in mystery and secrecy.

 

Thaksin Shin' said in 2004, that he wanted ALL diesel sold in Thailand to contain 15% of bio-oil in 15 years (2019); what happened to that one?

 

 

Edited April 28, 2019 by owl sees all

[owl sees all]

56 minutes ago, rooster59 said:

One of the factors leading to poor palm oil pricing is the warm climate causing palm fruit to become ripe prematurely, leading farmers to sell the produce to oil extractors resulting in higher costs and lower yields, while many farmers are speeding up the harvest at their farms to find money for tuition fees for their children as the new school term approaches.

I've just got to reply to this utter nonsense. I don't think the guy that spouted this has ever been to a palm plantation.

 

There is a window of about 4/5 days where the nuts are cut. Cut early and the wholeseller might refuse them as being under-ripe. Delay and the nuts fall to the ground, making them more difficult to gather (slower).

 

How the early ripening of the fruit can be achieved - even for something as important as a new school term - is beyond me.

Edited April 28, 2019 by owl sees all

[GR8fun in LOS]

It seems to me Palm Oil is a World Wide crop and not a God Send to greedy Thai farmers who want to win the lottery by Growing Palm Oil and making enormous profits for very little risk or planning.

 

Does anybody consider what the requirements may be in 4 to 5 5 years when the trees will start producing? Does the Government get involved in Planning for the Economic Growth of Thailand or just try to Fire Fight when the problems arise later.  Typically as a friend of mine says "Thai Forward Planning is what am I having for Lunch".

 

This is a Big Wide World - Thailand may be it's "Hub" but cannot control the Laws of Demand & Supply - just ask the Shins and their Rice Program.

 

Some people or counties win and on the opposite side some lose. 

 

How many Thai Lotteries have you won recently?

[Srikcir]

12 minutes ago, GR8fun in LOS said:

It seems to me Palm Oil is a World Wide crop

Indonesia is the largest producer of palm oil in the world followed by Malaysia that together account for over 70% of the world's supply of palm oil. https://www.worldatlas.com/articles/top-palm-oil-producing-countries-in-the-world.html

And there's no stopping their exports that will likely continue global flooding of palm oil:

• In March 2018 the European Court of Justice had ruled that the European Union must scrap anti-dumping duties of between 8.8% and 23.3% on imports of Indonesian biodiesel products.
• China continues to outstrip Europe as a market for palm oil products.  https://www.reuters.com/article/us-biodiesel-germany-verbio/eu-faces-biodiesel-import-surge-after-anti-dumping-duty-ends-idUSKBN1GZ2D2

Even though Thailand is ranked third as world producer of palm oil, it's out of its league as a cost effective competitor.

[Dek Somboon]

“One of the factors leading to poor palm oil pricing is the warm climate causing palm fruit tobecome ripe prematurely, leading farmers to sell the produce to oil extractors resulting in higher costs and lower yields, while many farmers are speeding up the harvest at their farms to find money for tuition fees for their children as the new school term approaches.“

 

SPOILER ALERT: The climate will only get warmer the more forest is cleared to grow oil palm...????????‍♂️????????????

[owl sees all]

2 hours ago, GR8fun in LOS said:

It seems to me Palm Oil is a World Wide crop and not a God Send to greedy Thai farmers who want to win the lottery by Growing Palm Oil and making enormous profits for very little risk or planning.

It seems to me that you don't know what you are talking about.