BANGKOK, 14 July 2015, The Public Warehouse Organization (PWO) is to conduct intervention buying of 100,000 tons of palm oil to stabilize falling prices.
The palm oil will be bought from refineries at 26.20 baht a kilogram.
The instruction was made on Monday during a meeting of the National Palm Oil Policy Council, which was chaired by the Deputy Prime Minister and Defence Minister General Prawit Wongsuwan.
Participating refineries must present procurement documents showing their palm oil is from bought from producers registered with the Department of Agricultural Extension. The campaign will conclude at the end of November.
The meeting also decided to assign officials to look into the cause of the drop in the palm oil price.
Palm oil production this year will likely decrease by 2.3 percent, due to the severe drought conditions. Currently the nation has 380,000 tons of stored palm oil. The amount is considered 100,000 tons more than the usual level. Officials are now to find ways to utilize the excess volume.