Oil palm price starts dropping

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BANGKOK, 7 April 2015, The price of oil palm fruits has begun to drop, thanks to the import of raw palm oil from abroad approved earlier this year.

According to the Ministry of Commerce, the price of oil palm fruits dropped to a bit over 5 baht per kilogram in February and continued to drop further to under 5 baht a kilo in March. The price was even down to only 3.6 baht a kilogram in some areas.

On April 3rd, farmers reported that they could get only between 3.40 – 3.60 baht for a kilogram of oil palm fruits. The price of individual palm fruits is now at 4 baht per kilo. The Department of Internal Trade has also reported that the average price of palm oil is currently at 3.60 – 4.30 baht a kilo, well below the 5 baht a kilo guaranteed by the Ministry.

To rub salt into the wound, new batches of raw oil palm fruits will begin to flood the market in April all the way to June, causing the prices to plunge further unless the ministry comes up with assistance measures.