Thai Commerce Min happy with retail price slash by manufacturers

[webfact]

Commerce happy with retail price slash by manufacturers



BANGKOK: -- The Commerce Ministry is happy now that manufacturers have agreed to reduce retail prices of 244 items of goods following decreasing oil prices.

Commerce minister Apiradi Tantaraporn expressed his satisfaction after going on an inspection of prices of goods at several markets.

After the inspection, she said the prices of vegetarian food have not been raised up too high this year, and the public could still afford to make purchases.

She disclosed that 23 product manufacturers have notified the ministry that they have lowered the prices of 244 items, following the decrease of oil prices.

Out of the listed items, 108 are in the food and beverages category, 35 items are construction materials, and 101 items in the lubricants category.

The retail price cut for food and drinks will be between 1-56 baht, she said.

Source: http://englishnews.thaipbs.or.th/commerce-happy-with-retail-price-slash-by-manufacturers


-- Thai PBS 2015-10-16

[Pimay1]

This does not mean the retail prices will be automatically lowered.

[worgeordie]

This does not mean the retail prices will be automatically lowered.

NO

regards Worgeordie

[johng]

101 items in the lubricants category. 555 prepare for a big shafting !

[Thian]

I see only overweighted lady's on that pic, but they do have white skin though!

[Pib]

Probably year end, over stocked items that would have been reduced in price anyway.

[bassman]

Good that the ministry has got the Thai manufacturing monopolies and price fixing to get more realistic with their pricing. In other countries competition does the trick.

[Thai at Heart]

Won't that push deflation even more?

[SOUTHERNSTAR]

So the manufacturers have decreased their prices. But the problem is we don't buy from them, we buy from the retailers which buys from the wholesalers which buys from the manufacturers. So who will get the benefit of the lower prices ?

[BuaBS]

....reduce retail prices of 244 items of goods following decreasing oil prices.

That's about 1 year or more of reduced oil prices....and now they are lowering retail prices ??

Couple of years ago , palm oil prices were so high , they had to raise the price of noodles....now with overproduction in palmoil and lower ingredient costs , the price is still the same.

[razer]

Do the retail stores have to cut prices also or will they just increase their profits. I haven't seen any reduction in prices of Thai made products at Big C or Tops.

[Praematura]

Price controls directed by the government. This place sounds more and more like China.

[SABloke]

And in other news: Tops has increased its deli price by 20% from 25 Baht to 30 Baht per 100g.

[elgordo38]

Good that the ministry has got the Thai manufacturing monopolies and price fixing to get more realistic with their pricing. In other countries competition does the trick.

Blowing smoke up his wazoo.

[Srikcir]

Won't that push deflation even more?

it gets "complicated."

Lower prices means lower profits, means less investment capital.

Cost of capital becomes more expensive.

Lower prices means decrease in manufacturing since the profits begin to disappear.

Decrease in manufacturing means layoffs.

Lower prices means hoarding for the day prices increase and commodities runout. (ref. Venezuela toilet paper shortage)

Layoffs mean lower revenues due to less production.

Less production raises commodity prices.

Inflation takes effect.

[Thai at Heart]

Won't that push deflation even more?

it gets "complicated."

Lower prices means lower profits, means less investment capital.

Cost of capital becomes more expensive.

Lower prices means decrease in manufacturing since the profits begin to disappear.

Decrease in manufacturing means layoffs.

Lower prices means hoarding for the day prices increase and commodities runout. (ref. Venezuela toilet paper shortage)

Layoffs mean lower revenues due to less production.

Less production raises commodity prices.

Inflation takes effect.

Thanks for that. If prices drop, it's deflation.

So, yes.. Let's keep it simple.

Less production increases commodity prices???? Australia must be awaiting China to really stop producing then.....

Edited October 16, 2015 by Thai at Heart

[Thai at Heart]

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Edited October 16, 2015 by Thai at Heart