Commerce Ministry orders palm oil stocks checked

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BANGKOK, 10 July 2012  – Commerce Minister Boonsong Teriyapirom has assigned Department of Internal Trade (DIT) to check stocks of palm oil and refineries.

Minister of Commerce Boonsong Teriyapirom yesterday revealed that he had ordered the Department of Internal Trade to check on the remaining stocks of crude palm oil and refineries, after receiving a report that showed the quantity of palm oil had dropped to less than 200,000 tons.

He was concerned that the situation might be critical in August, given the stocks could go down to 130,000 tons; adding that the reasons behind this oil stock reduction are the change of weather and a large palm oil export quota. In may alone, up to 50,000 tons of raw oil palms were exported despite the fact that local palm price was higher by five baht. Upon investigation, the ministry found that the export was meant to create shortages in the country, forcing palm oil prices to surge.To curb the export, the ministry plans to continue imposing a ten-percent surcharge on crude palm oil.

In addition, the Commerce Ministry will reconsider importing crude palm oil to solve palm oil shortages in the country, but it will have to wait for the results of the stock checking before making a decision of the amount to be imported.