BANGKOK, 24 July 2015 – The Ministry of Commerce is poised to continue its intervention scheme to prop up palm oil prices, despite a recent oversupply.
Commerce Minister Gen. Chatchai Sarikulya insisted that intervention buying is necessary to help oil palm growers, although a number of refineries are beginning to struggle with exports, due to more competitive products from Malaysia. Falling fuel prices in the global market have also forced down prices of alternative energy accordingly.
Under the scheme, the suggested price of palm kernels with 17-percent oil content is 4.20 baht per kg. That of raw palm oil is 26 baht per kg. The Public Warehouse Organization is tasked with stocking up on raw palm oil.
To enforce intervention buying, Gen. Chatchai led a team of officials down to southern Thailand to visit one of the biggest oil refineries in Surat Thani province, where he restated the objectives of the scheme to operators and agriculturists. In turn, he heard their problems and suggestions.
Gen. Chatchai assured them the ministry will devise solutions to their problems as soon as possible, adding that he has also instructed provincial internal trade offices to prevent illegal imports from the neighboring country.