DBD Probes 15 Fruit-Packing Firms Over Thai Nominee Use

The Department of Business Development (DBD) has identified 15 fruit-packing companies suspected of using Thai nationals as nominee shareholders while investigating issues linked to falling aromatic coconut prices. The discovery followed a meeting between the DBD and 10 government agencies examining foreign-backed operations within the fruit-packing sector. Officials believe the firms may have violated Thai business laws while influencing market conditions affecting farmers.

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Poonpong Naiyanapakorn, Director-General of the DBD, said the meeting focused on addressing the decline in farm-gate prices for aromatic coconuts and reviewing concerns across the industry’s supply chain. Authorities examined allegations that foreign capital groups had unlawfully penetrated the upstream, midstream and downstream sectors of the coconut business. Issues raised included fruit-packing registrations, labour practices, tax compliance and market behaviour that may have unfairly depressed prices paid to farmers.

Initial checks identified 15 legal entities considered high-risk for using nominee shareholders. Eleven of these companies are based in Ratchaburi, while Samut Prakan, Pathum Thani, Samut Sakhon and Bangkok each have one firm under scrutiny. Ten Thai nationals are believed to have supported these companies by acting as shareholders or directors, with some businesses operating for five to six years and others newly established.

The DBD has referred the case to the Central Investigation Bureau (CIB), the Department of Special Investigation (DSI) and the Anti-Money Laundering Office (AMLO) for further action. If violations are confirmed under the Foreign Business Act BE 2542 (1999), offenders could face up to three years’ imprisonment and fines ranging from 100,000 to 1 million baht. Authorities have also identified another 10 Thai individuals linked to these high-risk firms and forwarded their details to investigators.

The probe forms part of a wider analysis of Thailand’s aromatic coconut industry, which has faced sharp price fluctuations. The study found that only around 30% of coconuts meet export standards, selling at 4 to 5 baht per fruit at farm-gate level, while about 70% are substandard and fetch roughly 2 baht each. At the same time, planting areas expanded from 235,903 rai in 2021 to 305,706 rai in 2025, pushing production from 532,942 tonnes to 877,681 tonnes and creating oversupply.

Export value has also declined from 9.88 billion baht in 2023 to 6.45 billion baht in 2025, while Thailand’s share of the Chinese market has dropped from 75% to about 48%. Officials say foreign-backed operators investing across the supply chain may be influencing purchase prices and gaining advantages by not fully complying with required standards. Cases of adulterated coconut products labelled as 100% aromatic coconut water have also raised concerns about consumer trust and the industry’s reputation.

Authorities say the sector faces four key challenges: shortages that push prices too high, oversupply that depresses prices, low-cost competition from foreign capital, and adulterated products affecting quality and pricing. Current farm-gate prices remain insufficient to support farmers’ livelihoods, prompting calls for stronger monitoring of pricing structures across the supply chain.

The Nation reported that the Commerce Ministry is now accelerating measures to support the sector, including expanding domestic distribution channels for non-export-grade coconuts and promoting their use in processed products. At the same time, regulators plan stricter inspections of factories, labour practices and shareholder structures to ensure fair competition and compliance with Thai law.

Picture courtesy of The Nation

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Adapted by ASEAN Now Nation 8 Mar 2026

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