Palm oil price increase satisfactory: Minister Sontirat

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Palm oil price increase satisfactory: Minister Sontirat

By THE NATION

 

 

Energy Minister Sontirat Sontijirawong said today (January 14) that the price of palm oil has increased at a satisfactory rate and operations related to it were to manage palm oil stocks while controlling the price so it does not to reach an unproper rate.

 

“This reflects the fact that the government’s policies are in tune with market mechanisms, increasing the price at a higher rate than that of many years,” he said. “Also, the rise in price has proved that the government’s move to tackle problems was headed in the right direction.”

 

The minister said the illegal import of palm oil must be monitored strictly by related agencies.

 

The palm oil price today increased from between Bt2.50 and Bt3 per kilogramme to around Bt7.

 

One of the government’s policies that have helped the price increase was the promotion of biodiesel B10. The government has urged the use of crude palm oil in production and also instructed that oil be extracted from palm fruit.

 

Source: https://www.nationthailand.com/news/30380546

 

-- © Copyright The Nation Thailand 2020-01-15

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[impulse]

So, the world price is over $700 a ton and the Thai price is 7,000 baht a ton. 

 

And that's satisfactory to whom?  Or what am I missing?  

 

I suspect it's the difference is between what the poor farmers are paid and what the Elite sell it for on the world market.

 

[Chang_paarp]

If the Baht weakened the farmers would get more Baht on the open market for the same international price. Of course this is the theory on how these things work, reality is a much different creature.

[saengd]

43 minutes ago, impulse said:

So, the world price is over $700 a ton and the Thai price is 7,000 baht a ton. 

 

And that's satisfactory to whom?  Or what am I missing?  

 

I suspect it's the difference is between what the poor farmers are paid and what the Elite sell it for on the world market.

 

The price of domestic palm oil is heavily regulated by the government and is also heavily subsidised, only a small percentage is for export, less than 3%.

 

https://www.reportingasean.net/thailand-firm-protecting-palm-oil-sector/

[Scott Tracy]

What happened to market forces? Also, 100% price increase? Who gets that, the farmers? Who pays that? The people that buy the oil.

[DLock]

7 hours ago, saengd said:

The price of domestic palm oil is heavily regulated by the government and is also heavily subsidised, only a small percentage is for export, less than 3%.

 

https://www.reportingasean.net/thailand-firm-protecting-palm-oil-sector/

 

I don't know anything about Palm Oil.

 

But why do Thailand not export more palm oil than 3% if the world price is 3 times the local price? Or are the Government buying at 7,000 baht and selling at 21,000 baht, while at the same time claiming they are helping Farmers?

 

And why would they have to work about imports if the price is 1/3rd of what they can get world wide?

 

"The minister said the illegal import of palm oil must be monitored strictly by related agencies."

 

I don't really understand the math, logic or who is to benefit...but it seems very odd.

[bendejo]

Meanwhile 15+ years ago Malaysia began going great guns on palm oil production as it was becoming a new commodity.  Guess our boys here were otherwise distracted and missed the gravy train.

On the positive side they didn't turn the entire countryside into a palm plantation like Malaysia did.  Flew into Sabah once and that's what it looked like.