Instant noodle makers set to request 2-baht per packet increase of retail price

[snoop1130]

 

BANGKOK (NNT) - Makers of instant noodles are set to request a 2-baht per packet increase for the retail price of their products tomorrow (16 August). The manufacturers argue they are no longer able to absorb losses incurred from heightened raw material prices. The makers need the commerce ministry’s approval for a price increase, as instant noodles are regulated products.

 

In a joint press conference, manufacturers of 5 brands of instant noodles indicated they were taking losses from their operations due to heightened raw material costs. The 5 brands include Mama, Sue Sat, Wai Wai, Yam Yam, and Nissin. The manufacturers attributed the heightened costs to the Russia-Ukraine conflict and the increase in energy prices. They reported that wheat prices have risen by 2-3 folds and other raw materials have also appreciated in price. The instant noodle makers also expressed concerns about an impending rise in the minimum wage.

 

All 5 makers said they wanted the Department of Internal Trade to allow a price increase of 2 baht per packet. This would take the retail price to 8 baht per packet, from 6 baht at present. The manufacturers indicated they are prepared to clarify the details of their cost structure.

 

If approved, the 2-baht per packet increase will be the first price rise for instant noodles in 14 years. The most recent price raise was in 2008 when a packet’s retail price was raised from 5 to 6 baht.

 

All 5 manufacturers said they will hand their request for a price increase to the Department of Internal Trade tomorrow (16 August). They also intend to ask the department to consider the matter within this week. The manufacturers said if an increase is not approved, they will reduce the number of instant noodle packets being sold in Thailand. In this scenario, the makers will increase the amounts being exported as they are able to adjust the prices of their goods abroad.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG220815230253456

 

-- © Copyright NNT 2022-08-15

 

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[Puccini]

I didn't even know there was a legal price limit on instant noodles.

[KIngsofisaan]

Why is this news?

[The Hammer2021]

Good. I hope they  get it.

[bradiston]

4 hours ago, KIngsofisaan said:

Why is this news?

Because millions eat this every day. It's pretty much a staple for low incomes.

[KIngsofisaan]

3 minutes ago, bradiston said:

Because millions eat this every day. It's pretty much a staple for low incomes.

Millions eat rice everyday, yet you don't see a story about rice prices increasing 2 baht

[RichardColeman]

6 hours ago, snoop1130 said:

The manufacturers attributed the heightened costs to the Russia-Ukraine conflict and the increase in energy prices. They reported that wheat prices have risen by 2-3 folds and other raw materials have also appreciated in price.

Does Thailand have NO land or fields for growing wheat ? As a bowl of noodles must be killing the climate !

[AhFarangJa]

A 33% increase in one go. Seems a bit steep at first glance, yet how much has other foodstuffs risen in the last 14 years. 

However, I have to agree with Richard, why not grow more wheat at home. Everyone I know is complaining about the small profit on rice. Millions of acres devoted to growing corn for biofuel. Maybe time to diversify a bit more. Probably a simplistic idea as I am not a farmer. I am sure more knowledgeable members will put forward the pro's and cons.

[Daithi85]

1 hour ago, KIngsofisaan said:

Millions eat rice everyday, yet you don't see a story about rice prices increasing 2 baht

Yes u do.

[KIngsofisaan]

54 minutes ago, Daithi85 said:

Yes u do.

Well post some facts?

[freedomnow]

That's me - I'm done, I knew this day would come.

 

Goodbye Thailand, it was fun while it lasted.

[userabcd]

The government controls all and everything.

 

Nobody and nothing is free.

Edited August 16, 2022 by userabcd

[mikebell]

8 hours ago, snoop1130 said:

The 5 brands

This is encapsulated in the word CARTEL.  Thailand is swamped with such collectives/monopolies to force price rises on the public.  Any would-be independent company is strangled at birth.

[Cake Monster]

I would like to think that this 33 % increase that the Noodle Manufactures are asking for now, will also have taken into consideration the 18 % rise in the cost of Electric due to start on 1 st September.

From 4.0 Baht to 4.73 Baht / Unit cost, and dont forget the service charge , VAT and the other add ons that will send the price to over 5 Baht / Unit cost

Or will they be going back for more Money ?

These Electric price increase is going to add massive costs onto all Products from the Factory Gates as Manufacturers ramp up there charges for their goods.

Everything from Toilet Rolls to Noodles to cars is going to increase in cost, which will transmit into even more Inflation, that already seems to be out of control.

[JayClay]

3 hours ago, KIngsofisaan said:

Millions eat rice everyday, yet you don't see a story about rice prices increasing 2 baht

That's because the price of rice hasn't been increased by 2bt!

[Daithi85]

1 hour ago, KIngsofisaan said:

Well post some facts?

Google is your friend.

[hotchilli]

12 hours ago, snoop1130 said:

If approved, the 2-baht per packet increase will be the first price rise for instant noodles in 14 years.

Probably justified when you read that.

[hotchilli]

10 hours ago, KIngsofisaan said:

Why is this news?

25% increase on a Thai staple?

[Katipo]

This is outrageous. When I came to Thailand many years ago, they were only 5 baht a packet. When they went up to 6 the impact on my Budgeting was nearly enough to force me back home. Another 2 baht increase will make me destitute! Just euthanise me now!

[bradiston]

50 minutes ago, Katipo said:

This is outrageous. When I came to Thailand many years ago, they were only 5 baht a packet. When they went up to 6 the impact on my Budgeting was nearly enough to force me back home. Another 2 baht increase will make me destitute! Just euthanise me now!

 

Edited August 16, 2022 by bradiston

[Hawaiian]

At Walmart I buy a 12 pack box of Express brand ramen with 3 ounce packs for $2.88 which comes to 24 cents a pack vs. a 2.11 ounce pack of Mama for 23 cents (with the 2 baht raise) in Thailand.

I have seen Mama sold at one Hawaii supermarket for 80 cent a pack which is more than 3 times the cost of the Express brand.

I often use ramen mixed in with stir fry pork and vegetables, a dish my Thai wife likes.

 

[EricTh]

I think 2 baht increase after 10 years is quite reasonable.

 

The local stalls are charging me an increase of 10 baht (or more) for one plate of rice and dish.

 

I used to pay 35 baht but now stalls are charging me 45 baht or 50 baht per plate.

Edited August 16, 2022 by EricTh