BANGKOK, Thailand – The Department of Internal Trade (DIT) is stepping up oversight of palm oil purchases after the Songkran holiday, ordering immediate inspections of collection yards and extraction mills to prevent unfair pricing practices.
Palm prices have continued to rise, supported by reduced supply during the holiday period when some facilities temporarily halted operations. At the same time, demand remains strong, driven in part by the energy sector under B7 and B20 diesel policies, which have sharply increased crude palm oil consumption.
Recent data shows oil palm fruit prices at 7 to 7.9 baht per kilogram, averaging 7.45 baht, up about 25 percent from the same period last year. Crude palm oil prices ranged from 40.50 to 41 baht per kilogram, averaging 40.75 baht, an increase of roughly 15 percent year over year.
Provincial commerce offices in palm-growing areas have been instructed to inspect operations and ensure that purchase prices are clearly displayed and fairly applied. Legal action may be taken against operators found to be suppressing prices. Authorities will also continue managing crude palm oil exports through a prior approval system to maintain domestic supply, alongside upcoming discussions with industry representatives to monitor market conditions. (NNT)
