Food Shortages Push Up Thai Consumer Prices

[webfact]

Food shortages push up Thai consumer prices

BANGKOK, March 1, 2012 (AFP) - Thai consumer prices in February rose 3.35 percent from a year earlier, led by soaring food costs owing to drought in parts of the kingdom, the government said Thursday.

Inflation was almost unchanged compared with January, when consumer prices were up 3.38 percent, according to the Commerce Ministry.

"The food sector, especially vegetables, is facing supply shortages because drought hit several provinces in December and January," said a ministry official.

"Fresh vegetable prices alone soared 25.68 percent from the previous year," he said.

Overall food prices surged 7.18 percent in February, the data showed.

Just months after the end of the kingdom's worst flooding in decades, 19 of the country's 77 provinces have been affected by drought, mainly in northern and central areas, according to the government.

Thailand's central bank in January cut its benchmark interest rate for the second time in three months, to 3.00 percent, to stimulate an economy that shrank 10.7 percent in the fourth quarter of last year from the third.

The months-long floods last year killed hundreds of people and took a heavy toll on Thailand's industrial heartland north of Bangkok.

For the whole of 2012, the ministry maintained its forecast for inflation of between 3.30 and 3.80 percent.

-- (c) Copyright AFP 2012-03-01

[webfact]

COST OF LIVING

Consumer price index weakens but inflation rises

Petchanet Pratruangkrai

The Nation

BANGKOK: -- Thailand's consumer price index in February weakened slightly from the previous month, despite continued hikes in fuel and food prices.

According to the Commerce Ministry, the CPI rose up 3.35 per cent year on year last month. This pushed inflation in the first two months up by 3.36 per cent.

Yanyong Phuangrach, permanent secretary for commerce, said that inflation is likely to grow consistently due to the expected increases in fuel prices in the following months.

However, he is convinced that inflation should be under control, as the government is putting in place stringent rules to control increases in goods prices.

-- The Nation 2012-03-01

[Ricardo]

Time to 'dust off' the price-control system, and crack-down on profiteers, perhaps shoot a few to encourage the rest ?

[Cheops]

Food shortages push up Thai consumer prices

NO!

Greedy vendors push up Thai consumer prices!

Many times I see price-hikes at supermarkets of 25% and higher. Just without any reason for many items.

[MEL1]

""The food sector, especially vegetables, is facing supply shortages because drought hit several provinces in December and January," said a ministry official."

December? .......................................

Where did they direct the water again?

-mel.

[exeter]

Dont forget the fuel prices and that other favoured food SANG SOM which left us at 207 bts and returned at 235 bts, any old excuse is an ok for a price rise and its always the poor who take the biggest hit.

[sparebox2]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

[ginjag]

Jangwat Udon.........local market prices today, this is where it is supposed to be cheap.  rice 37 bht a kilo.  small satsuma style oranges, 60 bht a kilo. sea food up 25%...diesel 33 bht per litre, 91red 42, my water bill doubled, spirits up 20 bht. just to name a few for posters to compare.  To add petrol prices vary 6 bht per litre.   Just one point, Tesco sells so many brands of whiskey,   but I cannot go in to any Tesco to get the Tesco brand. Answer from customer service   NO HAVE  5555555555555555.  I said have you tried ordering any,  no have seems to be a normal Thai answer, rather than  OH I will get some.

[Unkomoncents]

Random price hikes (with the occasional and very conspicuous price fall that usually is immediately followed by price 'correction') at stores like Tesco are extremely common and seem completely arbitrary. The prices of pork and other foods have risen noticeably but gradually. The problem is that there is little choice but to go along with it; something stores the likes of Tesco must be well aware of. You could go to Villa but then you can expect to pay quite a bit more than you would anywhere else except for luxury/imported products. Tops? Max Valu? It was nice seeing the latter enter the market recently for a little healthy competition but both of them behave similarly to Tesco with regard to organization and sensible merchandise management.

[trainman34014]

Thailand....Hub of 'Everything under control', so don't worry, Chalerm will have another cunning plan !

[LuckyLew]

Simple economics, supply and demand sets the price

That is the way it should be

I see no problem

[softgeorge]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

Really then why have thier prices gone up? What is it, increase the price so the consumer will buy more and clear the over supply. My wife says the price of eggs have gone up because they are in short supply same with rice.

[sparebox2]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

Really then why have thier prices gone up? What is it, increase the price so the consumer will buy more and clear the over supply. My wife says the price of eggs have gone up because they are in short supply same with rice.

Either your wife cheat you or she has been cheated. Eggs prices in Thailand has plummeted. Only 2.40 baht each.

http://www.thepoultr...ummeting-prices

THAILAND - On 1 February 2012, chicken layer producers voiced their concerns to the Minister of Commerce on plummeting egg prices.

The producers requested the government to intervene by increasing the recommended egg price, a type of price control which is currently set at 2.40 baht/piece (0.08 US cents/piece) by the Department of International Trade (DIT) suspension of unlimited imports of breeding layers implemented in 2010, an introduction of an egg mortgage scheme, control of commercial eggs imports, and assisting producers in reducing their production cost.

According to trade sources, the Minister of Commerce disagreed with the requests, except with assisting producers in reducing production costs.

The producers claim that egg prices have lowered significantly to the recommended price of 2.40 baht/piece for mixed grade eggs, while their average production cost is currently 2.64 baht/piece.

Edited March 1, 2012 by sparebox2

[cowslip]

Every year the Kingdom has droughts....and flooding etc etc - they are usually at the same times of the year too.....so why does this happen?

It looks like someone is pulling a fast one - just spread the rumour sugar is in short supply and panic buying ensues - and is it in short supply? YES!!! because the guys who started the rumours bought all the sugar before they started the rumours.

every year someone in government or somewhere else in the know makes a pretty penny by manipulating the consumer market - they even did it with external hard-drives!

[trainman34014]

Very noticeable around our way that plastic bags of 10 eggs at the markets have not gone down, but small shops selling them in trays of 30 have slashed prices by up to 30 Baht per tray.

[cowslip]

Simple economics, supply and demand sets the price

That is the way it should be

I see no problem

you obvious;ly know nothing about Thailand.

"Simple" economics or market forces don't apply in Thailand as the entire economy is in the hands of a tiny number of people who work things out through monopolies, cartels, graft and nepotism.........."supply and demand" - my arse!

[mccw]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

Really then why have thier prices gone up? What is it, increase the price so the consumer will buy more and clear the over supply. My wife says the price of eggs have gone up because they are in short supply same with rice.

My in laws who are farming many kinds of vegetables are complaining abour that the government sets the minimum price the wholesale merchant must pay (it's alway the minimum what they get) the price has been set much lower than last previously, many case almost half, yet the prices in the shops \ markets have risen more than 20% ! it's obvious who is in bed together and ripping off the people at both ends. They are seriously pissed at what they see as betrayal after voting ptp

Not long till sum backlash begins as the brain washing and blind hopes and dreams starts to be replaced with cold hard reality

[kmj]

Simple economics, supply and demand sets the price

That is the way it should be

I see no problem

you obvious;ly know nothing about Thailand.

"Simple" economics or market forces don't apply in Thailand as the entire economy is in the hands of a tiny number of people who work things out through monopolies, cartels, graft and nepotism.........."supply and demand" - my arse!

What a load of crap...

[chooka]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

Really then why have thier prices gone up? What is it, increase the price so the consumer will buy more and clear the over supply. My wife says the price of eggs have gone up because they are in short supply same with rice.

Either your wife cheat you or she has been cheated. Eggs prices in Thailand has plummeted. Only 2.40 baht each.

http://www.thepoultr...ummeting-prices

THAILAND - On 1 February 2012, chicken layer producers voiced their concerns to the Minister of Commerce on plummeting egg prices.

The producers requested the government to intervene by increasing the recommended egg price, a type of price control which is currently set at 2.40 baht/piece (0.08 US cents/piece) by the Department of International Trade (DIT) suspension of unlimited imports of breeding layers implemented in 2010, an introduction of an egg mortgage scheme, control of commercial eggs imports, and assisting producers in reducing their production cost.

According to trade sources, the Minister of Commerce disagreed with the requests, except with assisting producers in reducing production costs.

The producers claim that egg prices have lowered significantly to the recommended price of 2.40 baht/piece for mixed grade eggs, while their average production cost is currently 2.64 baht/piece.

Total nonsense please tell me where you can buy eggs for under 3 baht each. At our local markets the price of a bag of 10 eggs range from 34 to 45 baht. There is apparently a severe shortage of eggs that is why the prices are going up and up. The way it is going they will get to around 12 baht per egg like in Aust.

[mayday49]

Dildo ....I mean ditto....

[ginjag]

Most of this EGG talk is bulsh#t,  there is not a shortage of eggs, how can posters believe it, because they saw it in print ????   go into any shop, market, roadside=you will find more eggs than you will ever wish to buy....talk about gullible. The same as rice. get into Big C, Tesco, have a look at stocks--look in these holding warehouses, crammed full.   reality is half the pigs and chickens have been wiped out, farms closed,fishermen died off, fruit farms diseased NO NO---it's all BO###cks, what is happening more than we think-just the same as the oil shortage, HaHaHa  big business holding back, then a panic then a price rise.  So a shortage eh!!!!  where can you not buy anything.......apart from Tesco whiskey own brand.

[softgeorge]

Most of this EGG talk is bulsh#t, there is not a shortage of eggs, how can posters believe it, because they saw it in print ???? go into any shop, market, roadside=you will find more eggs than you will ever wish to buy....talk about gullible. The same as rice. get into Big C, Tesco, have a look at stocks--look in these holding warehouses, crammed full. reality is half the pigs and chickens have been wiped out, farms closed,fishermen died off, fruit farms diseased NO NO---it's all BO###cks, what is happening more than we think-just the same as the oil shortage, HaHaHa big business holding back, then a panic then a price rise. So a shortage eh!!!! where can you not buy anything.......apart from Tesco whiskey own brand.

If there is no shortage then why are the prices going up? Prices going up and less sales then I guess more to rot in wharehouses and less revenue for the suppliers. One would think if there was surplus then the suppliers would be reducing the prices to move the perishible stock

[exeter]

Random price hikes (with the occasional and very conspicuous price fall that usually is immediately followed by price 'correction') at stores like Tesco are extremely common and seem completely arbitrary. The prices of pork and other foods have risen noticeably but gradually. The problem is that there is little choice but to go along with it; something stores the likes of Tesco must be well aware of. You could go to Villa but then you can expect to pay quite a bit more than you would anywhere else except for luxury/imported products. Tops? Max Valu? It was nice seeing the latter enter the market recently for a little healthy competition but both of them behave similarly to Tesco with regard to organization and sensible merchandise management.

Everything looks like cartel situation to me, makes business easier for the shops, does not matter if the shops run out everywhere will be the same so no one loses any money! Lets not think if we kept the shelves full and brushed up our ordering/supply system we might make more money or increase market share, all sound a bit to much like hard work! Edited March 3, 2012 by exeter

[exeter]

If Casino Group ( France) and Tesc (UK) came out here and saw how they operate, BIG C and TESCO LOTUS, in comparison to the French and UK operations they would have a fit! The unfilled potential is boundless, but would require hard work and a culture shock!!!!!!!!!!!!!!!!

Edited March 3, 2012 by exeter

[ginjag]

softgeorge. To my mind as I said there is NO shortage, the price rises are just price rises, with no government intervention because most product rises are putting the extra into government big wigs pockets. People will still buy when prices go up-they have to live-and they tend to over buy thinking that the price will go up further (panic) as in the palm oil job last year. MOST of these rises are total greed, but I will say in some cases percent rises are inevitable. I cannot understand why pork and chicken have doubled in the year, and it's not through wage rises or double feed costs. Why can Tesco sell rice 5 kilo's at 110 bht, when the market price is 150 bht-locally.???

[ginjag]

softgeorge. To my mind as I said there is NO shortage, the price rises are just price rises, with no government intervention because most product rises are putting the extra into government big wigs pockets. People will still buy when prices go up-they have to live-and they tend to over buy thinking that the price will go up further (panic) as in the palm oil job last year. MOST of these rises are total greed, but I will say in some cases percent rises are inevitable. I cannot understand why pork and chicken have doubled in the year, and it's not through wage rises or double feed costs. Why can Tesco sell rice 5 kilo's at 110 bht, when the market price is 150 bht-locally.???

[bendix]

There is an over supply of rice and eggs right now in Thailand.

This is a fact.

Really then why have thier prices gone up? What is it, increase the price so the consumer will buy more and clear the over supply. My wife says the price of eggs have gone up because they are in short supply same with rice.

Either your wife cheat you or she has been cheated. Eggs prices in Thailand has plummeted. Only 2.40 baht each.

http://www.thepoultr...ummeting-prices

THAILAND - On 1 February 2012, chicken layer producers voiced their concerns to the Minister of Commerce on plummeting egg prices.

The producers requested the government to intervene by increasing the recommended egg price, a type of price control which is currently set at 2.40 baht/piece (0.08 US cents/piece) by the Department of International Trade (DIT) suspension of unlimited imports of breeding layers implemented in 2010, an introduction of an egg mortgage scheme, control of commercial eggs imports, and assisting producers in reducing their production cost.

According to trade sources, the Minister of Commerce disagreed with the requests, except with assisting producers in reducing production costs.

The producers claim that egg prices have lowered significantly to the recommended price of 2.40 baht/piece for mixed grade eggs, while their average production cost is currently 2.64 baht/piece.

Total nonsense please tell me where you can buy eggs for under 3 baht each. At our local markets the price of a bag of 10 eggs range from 34 to 45 baht. There is apparently a severe shortage of eggs that is why the prices are going up and up. The way it is going they will get to around 12 baht per egg like in Aust.

You do understand the difference between wholesale prices and retail prices, don't you?

No? Obviously not.

Good grief. Thaivisa doesn't get any smarter does it?

[chooka]

@ Bendix - Actually I do know the difference between Wholesale and retail. Maybe you can enlighten me as to which this story is actually based on and point out where. I was refering to retail prices that have increased and not the wholesale prices however normally retail prices go up in line with an increase in wholesale prices so what is the difference?

[letitbe]

like all governments all over the world inflation figures are lies The real inflation here and most places for normal folk is at least 5-7% and for poor who spend most of their money on food its a lot higher

[letitbe]

like all governments all over the world inflation figures are lies The real inflation here and most places for normal folk is at least 5-7% and for poor who spend most of their money on food its a lot higher