Palm Oil Production Slows Amid Price Surge

[webfact]

 

by Paul Rujopakarn

    

BANGKOK (NNT) - Producers of bottled palm oil are reportedly facing higher costs following a spike in global prices.

 

World crude palm oil leaped to 62-63 baht/kg from 53 baht/kg during the pre-Songkran period. Fresh palm is currently priced at 13 baht/kg, over three times the state-guaranteed price of 4 baht.

 

The Ministry of Commerce previously set the ceiling price of bottled palm oil at 70 baht per bottle, though the actual price is now around 77-78 baht per bottle. Manufacturers have been forced to shoulder the excess costs.

 

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Several palm oil producers have since resorted to slowing down their production line, while others are using stocked crude palm oil or mixing palm oil with other types of vegetable oil to prevent shortages.

 

A number of manufacturers have also started exporting local crude palm oil to foreign nations offering more lucrative deals. Thailand exported about 112,000 metric tons of crude palm oil in March, seven times higher than the previous month. The April figure is likely to continue this trend.

 

-- © Copyright NNT 2022-05-09

 

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[RafPinto]

Inflation much higher as they report in Thailand.

[hotchilli]

5 hours ago, webfact said:

Several palm oil producers have since resorted to slowing down their production line, while others are using stocked crude palm oil or mixing palm oil with other types of vegetable oil to prevent shortages.

Looking at the huge aisle stacked with oil at my local supermarket a shortage was the last thing that came to my mind.

[Cake Monster]

5 hours ago, webfact said:

A number of manufacturers have also started exporting local crude palm oil to foreign nations offering more lucrative deals. Thailand exported about 112,000 metric tons of crude palm oil in March, seven times higher than the previous month. The April figure is likely to continue this trend.

And right there is the main problem.

Stop the Exports as Indonesia has done to preserve Local supply, and prevent massive Inflationary price increases, and maintain a stainable source for the local population.

But ! This is Thailand and Money will trump everything else

 

[trainman34014]

They are not shouldering the increases at all but passing it on to the Consumers while the Government does nothing !

[RickFarang]

Big C in Udon Thani is limiting cooking oil sales to 3 bottles per person as gaps are starting to appear on the oil shelves, at least for the less expensive oils.

[Bluespunk]

10 hours ago, webfact said:

Several palm oil producers have since resorted to slowing down their production line, while others are using stocked crude palm oil or mixing palm oil with other types of vegetable oil to prevent shortages.

If they are being made to sell their product at below market price, then fair enough response.

[rickudon]

On 5/9/2022 at 10:57 AM, webfact said:

The Ministry of Commerce previously set the ceiling price of bottled palm oil at 70 baht per bottle, though the actual price is now around 77-78 baht per bottle. Manufacturers have been forced to shoulder the excess costs.

Rubbish. Was in BigC at weekend, and many brands available and shelves full, only Sunflower oil was in short supply. Typical price was 63-69 baht a litre.