Talk About Skyrocketing Prices ?

[ThePunPun]

Is there something afoot that would be causing the price of cooking oil to skyrocket ??

At Makro the same brand name cooking oil , same size, 18 litre tin, same store,

October 22nd price 600 baht only up a few baht from the previous month

November 13th same brand and size, 730 baht.

November 27, todayt , same brand,same si;ze 870 baht

Thats a 270 baht increase in 2 months time

Anyone have a possible reason ???

[NADTATIDA1]

crude is rising!

[gotlost]

Ask PTT. They just jacked their fuel up 40 satang a liter more today.

[ozsamurai]

Thais have finally cottoned onto to bio-diesel? so the supermarkets want their share?

[No1]

In times where food is competing with fuel, it is normal that the prices for oil are rising.

Btw, when still in college, I used to run my old Merc 300D on sunflower oil which was quite a bit cheaper than Diesel and it worked well all year 'round.

[mrmillersr]

It's called inflation. Happens when economies heat up, as can be seen by the many items in Tesco's and other stores that have been going up as well.

Be happy it is just higher inflation, in contrast to the hyperinflation the US will soon be experiencing, which is completely different.

[thinkinofstayin]

Thais have finally cottoned onto to bio-diesel? so the supermarkets want their share?

It may well be that the increase in use of bio-diesel has caused a rise in demand for palm oil. I'd sure like to know. It certainly isn't just inflation since it is a more than 40% increase in two months.

[mcgriffith]

A probable answer is that the Thai gov't uses price controls on certain commodities.

I am certain cooking oil is one of the items on the price control list, along with diesel, sugar, etc.

Sometimes they hold the price down for a while, and then (slowly) release the item from the constraints.

I won't debate here the wisdom of these practices- just mention that this is probably the reason for the recent price spike.

[annabel]

And it was announced yesterday that the increase was ONLY FOR DIESEL ...and then I saw gasoline was also increased ... grrr....

Ask PTT. They just jacked their fuel up 40 satang a liter more today.

[annabel]

oops sorry didn't realize the Font was so bug....

Hello ..... November / December / January ....=Peak season ....Xmas , New Year ,,,,, and yeah , let's take advantage of the stupid farangs and some of the rich Thais also ...

All the prices for EVERYTHING have jumped up in the past 2 weeks ... E V E R Y T H I N G !!! Look at Makro ... look at Rimping ... look at Carrefour ... Look, look , look !! It is so disgusting and I just refuse to buy at these crazy inflated prices just because it is the PEAK Season and we are all being taken advantage off, Thais as well as foreigners ...

Button Mushrooms that you could buy last year for an average of 50 Baht for 1/2 kilo is now 70 to 90 Baht even at Wararot Market ... .. Nope I will not buy them ....Cherries, strawberries and of course cranberries .... 220 Baht for an imported pack of 250 Grams , 350 Baht a kilo for grapes, 300 Baht for a lousy whatever super small container of strawberries ... hel_l this is so outrageous and whoever it is out there buying these and encouraging these ridiculous prices... Shame on you !!! Oranges going at 120 Baht per kilo ... ??? Oye!! Please!! Even Butter has icreased by 20%!!! Yup this is all very painful for us foreigners who want our Xmas delicacies.... But when Flour, rice and other basic items sky rocket as they are doing now and the government proudly announces that in the new year the Thai labor will receive :"Workers at the bottom end of the wage scale will receive a New Year's Day pay rise of 11 or 12 baht, to a national average of 210 baht a day - a move economists say will cut national growth a bit ........." Pffff!!!!!!!!!.. This is decadence and such a slap in the face to all but mostly to the Thai people ... And we wonder why ............................

A probable answer is that the Thai gov't uses price controls on certain commodities.

I am certain cooking oil is one of the items on the price control list, along with diesel, sugar, etc.

Sometimes they hold the price down for a while, and then (slowly) release the item from the constraints.

I won't debate here the wisdom of these practices- just mention that this is probably the reason for the recent price spike.

[No1]

s ... hel_l this is so outrageous and whoever it is out there buying these and encouraging these ridiculous prices... Shame on you !!! Oranges going at 120 Baht per kilo ... ??? Oye!! Please!!...... Pffff!!!!!!!!!.. This is decadence and such a slap in the face to all but mostly to the Thai people ... And we wonder why ..........

I don't understand the outrage. If they are wrong with the price, no-one will buy that stuff. If it's such a good business, why don't you offer that stuff yourself? It's still dirt-cheap or do you wanna pick oranges? Thailand is such a low-priced country and you are wacking out when Thailand wants to make a bit of money, too. Your post gives the impression you want to keep this country this low priced to live well on the back of the Thai people and their businesses.

[Ulysses G.]

... Look, look , look !! It is so disgusting and I just refuse to buy at these crazy inflated prices just because it is the PEAK Season and we are all being taken advantage off, Thais as well as foreigners ...

I am not sure that supermarkets are raising their prices because of high season. How many tourists even shop in most of them?

[gotlost]

... Look, look , look !! It is so disgusting and I just refuse to buy at these crazy inflated prices just because it is the PEAK Season and we are all being taken advantage off, Thais as well as foreigners ...

I am not sure that supermarkets are raising their prices because of high season. How many tourists even shop in most of them?

I agree with you UG. This has nothing to do with high or low seasons. Its the world economics. Wife went to the local market and last year baby onions were 20 bpk now 90bpk. Price all over the world are climbing up.

[vagabond48]

Time to go on a hunger strike!

[elektrified]

... Look, look , look !! It is so disgusting and I just refuse to buy at these crazy inflated prices just because it is the PEAK Season and we are all being taken advantage off, Thais as well as foreigners ...

I am not sure that supermarkets are raising their prices because of high season. How many tourists even shop in most of them?

I agree with you UG. This has nothing to do with high or low seasons. Its the world economics. Wife went to the local market and last year baby onions were 20 bpk now 90bpk. Price all over the world are climbing up.

Exactly. Also a lot of the items annabel mentions; particularly the fruit, are imported from China and other countries.

[hiro]

as long as the price of palmoil and rubber paid to the producer is going up too it is ok.

Both have nearly doubled in the past 3 months.

Wife came home just now, 71 kg liquid rubber off 600 trees for the nights work - almost 3.000 Baht. One year ago that would have been less than half that amount.

For those of us who depend on income from the Euro or Pound only tough times lie ahead.

[macsurf]

as long as the price of palmoil and rubber paid to the producer is going up too it is ok.

Both have nearly doubled in the past 3 months.

Wife came home just now, 71 kg liquid rubber off 600 trees for the nights work - almost 3.000 Baht. One year ago that would have been less than half that amount.

For those of us who depend on income from the Euro or Pound only tough times lie ahead.

Could be a consequence of flooding in the south. Killed off alot of rubber trees.

[catmac]

as long as the price of palmoil and rubber paid to the producer is going up too it is ok.

Both have nearly doubled in the past 3 months.

Wife came home just now, 71 kg liquid rubber off 600 trees for the nights work - almost 3.000 Baht. One year ago that would have been less than half that amount.

For those of us who depend on income from the Euro or Pound only tough times lie ahead.

Could be a consequence of flooding in the south. Killed off alot of rubber trees.

Macserf has got it in one....the recent floods in Southern Thailand and Malaysia will impact on Palm Oil and Rubber production next year.

As always in times of disaster there is a clear distinction between the generosity of the common people and the naked greed of Government officials (see threads in News section!) and speculators on the commodity market and the cartel of Palm Oil producers themslves, who see only a chance to make a quick killing on the back of others' misery.

By the way, PunPun, you were lucky to find any oil at Makro, I was there last Friday and the shelves were empty - same too for coconut milk!

[yeoldesage]

By the way, PunPun, you were lucky to find any oil at Makro, I was there last Friday and the shelves were empty - same too for coconut milk!

I hear quite soon sugar can be added to that list, price hype on the way early next year.

Edited November 28, 2010 by yeoldesage

[elektrified]

If you look at the ticker tape for the Stock Exchange of Thailand, you will see that Palm Oil is a commodity in which you can bet on its price going up or down in the way of call or put options. So it make sense that the price fluctuates so much. Right now prices are inflated.

[ThePunPun]

By the way, PunPun, you were lucky to find any oil at Makro, I was there last Friday and the shelves were empty - same too for coconut milk!

I hear quite soon sugar can be added to that list, price hype on the way early next year.

I'm here to tell you it won't be soon...... soon is already here and has been for 6 - 9 months now. Price rapidly increasing and about that long ago Makro would make it very difficult to buy the 25 kg bag of sugar, then you could not buy at all for a while. Was forced to search it out in other markets. One of the best shots I found was at the YOK Store on the super hwy. Someone was breaking down the bulk and selling in kilo clear plastic bags, for only a slight premium.

Sort of reminds me of the old Honeywell Advert, { the future is today at Honeywell } or something to that ilk.

Gonzo

[LivinLOS]

As always in times of disaster there is a clear distinction between the generosity of the common people and the naked greed of Government officials (see threads in News section!) and speculators on the commodity market and the cartel of Palm Oil producers themslves, who see only a chance to make a quick killing on the back of others' misery.

Speculators in markets are what keeps the system in balance..

People bet on scarcity next year.. Prices rise.. Farmers see higher prices.. Plant more crop.. Prices fall.. Balance.

Otherwise you have communism and gov price controls and people lining up to buy a potato.

[elektrified]

As always in times of disaster there is a clear distinction between the generosity of the common people and the naked greed of Government officials (see threads in News section!) and speculators on the commodity market and the cartel of Palm Oil producers themslves, who see only a chance to make a quick killing on the back of others' misery.

Speculators in markets are what keeps the system in balance..

People bet on scarcity next year.. Prices rise.. Farmers see higher prices.. Plant more crop.. Prices fall.. Balance.

Otherwise you have communism and gov price controls and people lining up to buy a potato.

Exactly.

[ThePunPun]

Then there is the creative marketing.....

Again at Makro where I do shop several times monthly.

Example

BBQ Potato Chips

Old pkg'ng ='s 6pak times 60 gr bags ='s 360 Grams selling for 102 Baht

New pkg'ng ='s 4 pak times 85 gr bags ='s 340 Grams selling for 114 Baht

Yes I know its only a 12 baht increase but it is for 20 grams less

But the bag physical size and appearance is exactly the same save for the printing on the exterior of 85 grams.

The 4 pkg oversize is almost identical to the 6 pak size

They are sold in the same position and bin as the old 6 pak location

But if you are not careful and read carefully when time comes for you to resell , retail to the customer you will sell the new one for the same as the old one.

The consumer, if seeing a new price, will balk at the new size as its not what they are used to and strangely enough the new 85 gr size is difficult for one person consuming at one time.

But the result for the wholesaler is they sell less product for more money and save the cost of production of 2 bags.

Now before this gets all hopped on, I know its a small and insignificant example, but multiply it times the many items you may buy at a store like this and it becomes significant in the harder times.

Now I still like and will continue to shop at Makro and the likes, but do point out to fellow customers, Please be careful and check out fully the packaging as well as the pricing at these places

I think Makro is a great place to shop, but do wish they would find some way to do the restocking at night rather than the forklifts running and blocking isles during the busy daytime. Its more like the storeis for the benefit of the stockers rather than the customers.

G

[Lizard2010]

A lot could be the value of the Baht.

Plus what you call INFLATION, just another way to rip people of.

We have watched over the years that the QTY of a product has reduced and the cost either the same or goes up.

It is always handing out money to make the Rich Even More Richer.

[TaiKai]

It is always handing out money to make the Rich Even More Richer.

If you can't beat 'em, join 'em

[amexpat]

It is always handing out money to make the Rich Even More Richer.

If you can't beat 'em, join 'em

But I can't beat 'em and they won't let me join 'em.

[Ticketyboo]

I can't beat 'em and they won't let me join 'em.

Hello Play-mates,

That invites the line "As a complete outsider, what do you think of the human race?".

I thank you.

[orang37]

Sawasdee Khrup, TV CM Friends,

In terms of evaluating these observations of commodity price increases, we'd like to know:

1. which are imports (we know for a fact that Thailand is a net importer of soybeans)

2. which are home-grown

3. did this year's drought (and pollution) affect basic production of the commodity in question

4. did another kind of natural disaster or weather (flood ?) impact production

5. has increased price of packaging and shipment come into play here (cost of container materials, cost of transport, i.e., gas/lpg whatever).

6. to what extent is the fact that the strong baht at this time reflects large capital speculative inflows: to what extent are those inflows being invested in agricultural "futures" in a way that might affect consumer end-point prices.

7. to what extent is demand for these commodities outside Thailand increased: thus raising their inherent value.

8. to what extent is greed, bribery, corruption, or just "relaxation of price controls," affecting prices.

9. given the opening of trade with China via the Mekong in the last five years resulting in damage to Chiang Mai farmers of specific crops like garlic, is there any "Chinese" factor at play here ?

10. Of course, we'd also like to know what else we don't know ... which we suspect is ... vast.

thanks, ~0:37;

Edited November 30, 2010 by orang37

[Ulysses G.]

I hope no one minds if point out that I have been listening to expats complain about the "skyrocketing prices" in Thailand for over 20 years, but it is still much cheaper than back home.