Spiraling Phuket Prices Blamed On Bt300 Min Wage

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Spiraling Phuket prices blamed on B300 min wage

Phuket Gazette

PHUKET:-- A market vendor at the busy Kaset Market in Phuket Town yesterday told the Phuket Governor the 300-baht-a-day minimum wage was forcing vendors to pass on price hikes of fresh produce to consumers.

Governor Maitri Inthusut yesterday morning led officers to inspect food prices at Kaset fresh market, located behind the Robinson department store in Phuket Town (map here).

The purpose of the visit was to prevent gouging ahead of the Chinese New Year festivities, which begin on February 10.

newsjsDuring his walk-through of the market, Governor Maitri noted that vegetable prices were on the rise. “Most vegetables have jumped 5 to 10 baht. Kale and Chinese kale were 25 baht per kilogram, now they are 35 baht per kilo,” he remarked.

“Fruit prices are increasing, too – especially oranges, as they are believed to be auspicious during Chinese New Year. Oranges are now 5 baht more a kilogram. They were 75 baht, but are now 80 baht per kilo. The price of green apples has also jumped, to 18 baht each; before they were 15 baht apiece,” he said.

Gov Maitri predicted the prices of other fruits would follow suit, notably fruits used as auspicious offerings during Chinese New Year ceremonies, such as bananas, pears and grapes.

To this, fruit vendor Sakorn Ngarnwongpanit countered, “So far, only orange and apple prices have increased for the upcoming Chinese New Year, but it is like this every year – prices rise in response to rising demand.”

Yet, non-vegans were also being hit by rising meat prices, the governor noted.

“Pork has increased by 10 baht, and is now 130 baht per kilogram, but the price of chicken has yet to increase,” Governor Maitri said.

Pork vendor Choompol Sae-Ng blamed the 300-baht minimum daily wage set by the government as the reason for the price of raw meat rising.

“A lot of people are complaining about the price of food going up, and saying that they have to buy it even if the prices do go up. It is because of the 300-baht minimum wage set by the government . The cost of production has increased, and so the prices have increased,” he said.

Mr Choompol warned that further price rises may be on the way, and that vendors will be forced to pass any markups made by produce suppliers on to consumers.

“We are keeping an eye on the prices. If pig farms raise their prices, then we will have to raise ours too,” he said.

Despite his concerns over the rising prices, Governor Maitri noted that all the market stalls inspected were selling fresh produce at prices still under the maximum prices regulated by the Department of Interior Trade.

For more on the Phuket cost of living, consumer food trends, and to find out how to reduce the burden of rising prices in Phuket, pick up a copy of the Phuket Gazette, on stands this Saturday.

Source: http://www.phuketgaz...wage-20136.html

-- Phuket Gazette 2013-02-05

[belg]

did the price of dead chicken the street vendors get at the chicken farms for almost free also increase in price ?

[warfie]

Higher wages lead to higher prices? Who would have guessed that would happen?

I'm off to the market now, to buy some rice at an artificially inflated price.

[LivinginKata]

Higher wages lead to higher prices? Who would have guessed that would happen?

I'm off to the market now, to buy some rice at an artificially inflated price.

Yes, it's shocking. Maybe the government expects the 'business' to absorb the higher salary costs.

[Guest]

I guess the who minimum salary increase is to address the high baht value. This will increase inflation which will later on result as dropping baht value against other currencies.

[lemoncake]

Higher wages lead to higher prices? Who would have guessed that would happen?

I'm off to the market now, to buy some rice at an artificially inflated price.

Yes, it's shocking. Maybe the government expects the 'business' to absorb the higher salary costs.

They do, this is why they made statements a few times indicating that most businesses will absorb the costs and those that can not should not be in business.

If the hike was 10%, no doubt many would have absorbed it, but almost double (for some provinces) is little too much to absorb.

Seems prices went up not in proportion to wage rise, which means those who really needed the wage rise are now in a much worse position than before

[terryp]

it is only matter of time until serious problems here, I just cant imagine trying to raise a family even on 9,000 baht a month…Rent , Phone, Motorbike ++++

It doesn’t take a genius to see huge debt is coming along, an increase in opportunist crime ..& job losses too

80 BAHT!!!! for a kilo for local cr&p oranges who said Thailand was cheap???........I just dont get it; at Macro IMPORTED saville oranges are 37baht a kilo

Edit: also remember part of the agreement on the 300baht was NO more wage increases for 2 years

Edited February 5, 2013 by terryp

[jocko]

I know some have not increased the salary to 300b and will get more staff from Burma if they can

[Felt 35]

That businesses blame wage hikes under a Government umbrella also in business is as expected......but do not forget that there in Thailand is less than 15 million people who work in the formal sector, i.e.salaried people with legal labour benefits and protection. The majority, 25 million, are informal workers without official contract arrangements, regular incomes or labour rights. This number is on the rise as employers prefer to outsource their work to cut costs on welfare and work safety. The informal sector contributes nearly 50% of gross domestic product but they have to put up with long work hours, low and irregular pay, work hazards, and no welfare and labour protection, including no minimum wage.

[SICHONSTEVE]

Higher wages lead to higher prices? Who would have guessed that would happen?

I'm off to the market now, to buy some rice at an artificially inflated price.

Yes, it's shocking. Maybe the government expects the 'business' to absorb the higher salary costs.

You can't expect the Thai government to understand economics, now can you!!!.

[Yahooka]

it is only matter of time until serious problems here, I just cant imagine trying to raise a family even on 9,000 baht a month…Rent , Phone, Motorbike ++++

It doesn’t take a genius to see huge debt is coming along, an increase in opportunist crime ..& job losses too

80 BAHT!!!! for a kilo for local cr&p oranges who said Thailand was cheap???........I just dont get it; at Macro IMPORTED saville oranges are 37baht a kilo

Edit: also remember part of the agreement on the 300baht was NO more wage increases for 2 years

Macro oranges aren`t "auspicious" .

[CantSpell]

Governor has not been to the market since how long?

Price increased from 5 to 15THB per kilo for most products... As every year starting December high season....

5 to 15 THB more at small Lotus as well, as every years...

And they are out of stock by 17.00 pm daily....

Then in May, poof, down by 5 to 15 THB....

Same as every years: always hear the wife complain about price hike at beginning of high season....