Action Promised On Palm Oil Shortage In Thailand

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Action promised on palm oil shortage

By Piyanuch Thamnukasatchai,

Chularat Saengpassa

The Nation

DSI head says hoarding caused the shortage; two factories to be inspected today

Deputy Prime Minister Suthep Thaugsuban, who chairs the national palm-oil policy committee, yesterday pledged to come up with effective measures to solve the acute shortage of cooking oil next week.

"We'll have to investigate what has happened. If the Commerce Ministry cannot import [more palm oil to ease the domestic shortage], we may have to allow the private sector to do so.

"The committee will meet on Tuesday to discuss this issue," he said.

Suthep brushed aside allegations that he himself was among the beneficiaries of the palm-oil shortage.

Officials from the Department of Special Investigation (DSI) will today search the factories of at least two major cooking-oil companies suspected of hoarding the first lot of 30,000 tonnes of palm oil imported into the country recently.

Tarit Pengdit, the DSI director-general, said hoarding had caused the severe shortage of cooking oil in the country and led to exorbitant prices.

A total of 10 companies were earlier awarded quotas from the first 30,000 tonnes of imported palm oil. However, a big portion of that oil has disappeared from the market.

Industry sources said some of the imported palm oil was also hoarded by biodiesel retailers, as it fetches a higher price when blended as biodiesel.

At present, the government promotes the use of biodiesel B3 and B5, which have 3-per-cent and 5-per-cent palm-oil content respectively.

In addition, edible-oil companies have hoarded the commodity in hopes of selling bottled cooking oil at a higher price later on. They bottled the imported palm oil but did not distribute it to retailers under the government's price-control programme.

Tarit said DSI officials would examine inventories and other data to determine the flow of imported palm oil so as to take action against those who have hoarded it.

Pol Colonel Narat Savetanan, the deputy DSI chief, said the DSI and the Department of Internal Trade would enforce rules and regulations on price controls and hoarding.

Earlier, the Department of Internal Trade reported that there was no hoarding of cooking oil at major retail outlets.

Chatchai Chookaew, an adviser to the Commerce Ministry, said he hoped the DSI would take "straightforward action" so that the culprits behind the shortage were not allowed to get away with it.

Industry sources said there were four companies that were allocated imported palm oil but had not bottled the cooking oil for retail sales at a price of Bt47 per litre as agreed earlier with the government.

These firms use the Kesorn, Yok, Waew and Raja brands.

Altogether, they got 12,850 tonnes of palm oil, enough to bottle 9.8 million litres of cooking oil. As a result of their alleged action, the supply of bottled cooking oil is insufficient.

In the first shipment of 30,000 tonnes, the import price of palm oil was Bt39.57 per litre. It is estimated that 30,000 tonnes of palm oil would be enough for 22.8 million 1-litre bottles.

Hoarders stand to make hefty profits from selling the product later amid rising commodity prices in the world market.

Given that the domestic shortage is still acute, the Suthep committee wants to the Commerce Ministry to import another 120,000 tonnes of palm oil quickly.

Of this additional import, major food companies such as instant-noodle makers will get 20,000 tonnes, while small and medium-sized enterprises will get 10,000 tonnes.

The remaining 90,000 tonnes will be distributed for household consumption.

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The 10 factories allocated 30,000 tonnes of imported palm oil

Factory Brand Quantity (in tonnes)

1 Pathum Vegetable Oil Factory Kesorn 6,000

2 Lam Soon (Thailand) Yok 3,900

3 Palm Oil Energy Industry Waew 1,950

4 TS Oil Industry Co Racha 1,200

5 Oleen Co Oleen 3,600

6 Morakot Industry Co Morakot 5,100

7 Suk Somboon Vegetable Oil Taptim/Chaiyo 1,200

8 The Natural Group Bee 1,200

9 Lao Thong Sing Co na 1,200

10 Chumporn Palm Oil Industry Leela 4,650

Source: The Nation

-- The Nation 2011-02-19

[yellow1red1]

Suthep brushed aside allegations that he himself was among the beneficiaries of the palm-oil shortage

more, please?

[whybother]

Allow a free for all for private companies to import the oil. That will screw all the companies that have been hoarding it.

[whybother]

The Puea Thai Party’s Deputy Spokesperson blamed the government for not heeding the advice proposed by his party to respond to supply shortages. He said a market selling cheap household products will be held at its headquarters on New Petchaburee road next Tuesday in an attempt to help Thais. Products sold will consist of palm oil, rice, egg, instant noodles and canned sardines.

I see that the that PTP is one of the groups doing the hoarding.

[tig28]

The Puea Thai Party's Deputy Spokesperson blamed the government for not heeding the advice proposed by his party to respond to supply shortages. He said a market selling cheap household products will be held at its headquarters on New Petchaburee road next Tuesday in an attempt to help Thais. Products sold will consist of palm oil, rice, egg, instant noodles and canned sardines.

I see that the that PTP is one of the groups doing the hoarding.

Some sad Wallies just never give up.

"Deputy Prime Minister Suthep Thaugsuban, who chairs the national palm-oil policy committee, yesterday pledged to come up with effective measures to solve the acute shortage of cooking oil next week."

"Prompong said a politician with the initial "S" had been involved in keeping the commodity off the market.(http://www.thaivisa....ng-in-thailand/)

"Suthep brushed aside allegations that he himself was among the beneficiaries of the palm-oil shortage."

[IndyWally]

In Chiang Mai the shortage is soy bean oil not palm oil. The shelves here are full of palm oil [about the nastiest oil for cooking and consumption that you could use] but we can't find soy bean [thua leueng] anywhere. Where is the news on this shortage?

[Robby nz]

The Puea Thai Party's Deputy Spokesperson blamed the government for not heeding the advice proposed by his party to respond to supply shortages. He said a market selling cheap household products will be held at its headquarters on New Petchaburee road next Tuesday in an attempt to help Thais. Products sold will consist of palm oil, rice, egg, instant noodles and canned sardines.

I see that the that PTP is one of the groups doing the hoarding.

Some sad Wallies just never give up.

"Deputy Prime Minister Suthep Thaugsuban, who chairs the national palm-oil policy committee, yesterday pledged to come up with effective measures to solve the acute shortage of cooking oil next week."

"Prompong said a politician with the initial "S" had been involved in keeping the commodity off the market.(http://www.thaivisa....ng-in-thailand/)

"Suthep brushed aside allegations that he himself was among the beneficiaries of the palm-oil shortage."

If PTP are not involved in hoarding then where did they get it from to sell?

Dont tell me Suthep sold it to them.

[Sunderland]

Why don't the fools just boil, steam and grill their food???

[givenall]

Allow a free for all for private companies to import the oil. That will screw all the companies that have been hoarding it.

Fat chance. Thailand does not have free market, all big business are owned by the few rich families who also control everything in government

[TerryMason]

Try RICE OIL? It's excellent for cooking and not too 'sticky'! Cheers

[philhal2]

Allow a free for all for private companies to import the oil. That will screw all the companies that have been hoarding it.

Fat chance. Thailand does not have free market, all big business are owned by the few rich families who also control everything in government

Fat chance ,every country in the World is controlled by the few greedy wealthy families who seized control hundreds of years ago and have maintained the same death grip on the population since . The only thing that loosens the chokehold on the people is civil wars , rebellions , assassinations and anything else that scares the hell out of the wealthy so that they want to start doing the right thing for a while .

[mdechgan]

I hear Suthep had lots to gain on the palm oil prices rising.

He owns a plantation in Surat Thani.

The biodiesal idea was really great wasn't it?

[spirit47]

I wonder when I see family with 7 people can't pass the cashdesk in one time...

Everybody must pay his 2 bottles alone.

In Central there is nearly nothing on oil, palmoil I prefer for my french fries nothing the last weeks,

soybean oil the same, but I never buy, maybe its gentech, sunflower I used last time,

good for frech fries too.

No problems with virgin olive oil for Salad and pasta...

If anybody know where to buy palmoil for coocking in cans up 10l or gallon,

please send boardmail.

[Credo]

Some cash in the right palms should put the oil back on the shelves.

By the way, does anybody know how the price here compares to Cambodia, Malaysia and other nearby countries?

[gotlost]

Next week???? To hell with that. What part of NOW do they not understand.

[Felt 35]

Maybe there had been an idea for the Government a decade ago to think a bit further than to next pay slip and made some more palm tree plantations instead of use all the land to build hotels, shopping centers and highways.

[bubba]

I was just at my local Villa Market and there was not one single bottle of any Thai cooking oil. The shelf was completely bare. The only oils available were olive oils and various expensive imported oils. I don't know what the situation is around the city, but there will soon be a serious shortage of fried chicken and pad krapow!

Seriously though, if the oil is running out, this will have some very serious repercussions on many things, including thousands of small food vendors.

On the other hand, there's plenty of B5 diesel (5% palm oil - 95% diesel) on offer at PTT. Would probably make some very nasty fried chicken, though.

[janverbeem]

!

Seriously though, if the oil is running out, this will have some very serious repercussions on many things, including thousands of small food vendors.

Don't forget to add the health of the customers of those food vendors because they just will keep using the old oil if there is no new available at affordable prices.

[Scott]

I was shopping today. I was at a somewhat upscale grocery store and at a shopping mall. The oil shelves were pretty bare. There wasn't even much of the imported oil, either, except olive oil.

The ones I noticed that were absent--other than all the Thai oils, were Canola oil, sunflower oil, corn oil and soybean oil. Also no Rice Bran oil.

I wasn't looking for cooking oil, but after reading about the shortage, I looked closely.

[miksguevara]

Allow a free for all for private companies to import the oil. That will screw all the companies that have been hoarding it.

Fat chance. Thailand does not have free market, all big business are owned by the few rich families who also control everything in government

Fat chance ,every country in the World is controlled by the few greedy wealthy families who seized control hundreds of years ago and have maintained the same death grip on the population since . The only thing that loosens the chokehold on the people is civil wars , rebellions , assassinations and anything else that scares the hell out of the wealthy so that they want to start doing the right thing for a while .

umm most millionaires are self made...?

[ginjag]

Why don't the fools just boil, steam and grill their food???

Thais use it for a host of other things--such as making salad cream........... so your advice is sound, but its other uses are far more than frying. Thais use it to oil their fans, motorbikes, yes and some tell me for ( lube/ thing) The village Thai who needs this everyday, cannot get hold of it/ or instead of 37 baht 2 weeks ago-went up in some mini marts to 68 a litre. Now some big wig armhole here knows what he is doing. look at the profit on one litre alone. Thai business robbing its own customers, and countrymen. Can we call it a scam ???? stinks doesn't it. order me another Bentley please, I'll leave it to the salesman to choose this time. I just hope and pray what they have gets some sort of storeage bug.

[janverbeem]

Industry sources said some of the imported palm oil was also hoarded by biodiesel retailers, as it fetches a higher price when blended as biodiesel.<BR sab="384"><BR sab="385">

Biodiesel is around 30 Baht a liter while cooking oil official price is 47 Baht a liter.

[DickFarang]

Allow a free for all for private companies to import the oil. That will screw all the companies that have been hoarding it.

Fat chance. Thailand does not have free market, all big business are owned by the few rich families who also control everything in government

Fat chance ,every country in the World is controlled by the few greedy wealthy families who seized control hundreds of years ago and have maintained the same death grip on the population since . The only thing that loosens the chokehold on the people is civil wars , rebellions , assassinations and anything else that scares the hell out of the wealthy so that they want to start doing the right thing for a while .

That is exactly what happened in Germany after the First World War, but I guess that subject is taboo.