Commerce Ministry set to maintain the price of palm oil

Despite the ongoing palm fruit price rise, the Ministry of Commerce has decided to maintain the price of palm oil until the end of this year, pegging it at 38 baht per litter, hoping to assist disaster affected people.
Somchai Jongsawadichai, of the palm oil refiners association of Thailand, yesterday revealed that he had submitted a letter to the Commerce Ministry requesting that refiners be allowed to increase the retail price of palm oil to 48 baht per liter, up from 38. The reason for the request was that the production costs of palm oil at present stood at 40 baht per liter, thanks to the price of raw palm fruit which had gone up to 7 baht per kilogram, highest in the industry’s history.
The Ministry of Commerce, however, turned down the request, reasoning that the price hike would add to the burden of flood victims. The price would, therefore, remain the same until the end of this year; after which the ministry would reconsider the Association’s price rise request, Somchai added.