Thailand domestic sales of fruit backed to offset China export blockage

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BANGKOK – The Ministry of Commerce has prepared measures to support the sale of fruit in Thailand, after the coronavirus disease 2019 (COVID-19) situation cut exports to China. The ministry has also called on oil palm farmers to be confident the price of their produce will not fall further after dropping from seven baht a kilogram to just above the state guarantee price of four baht, at a current five baht.



The Director-General of the Thai Department of Internal Trade (DIT), Whichai Phochanakij, says that while oil palm fruit is near its marketable period between March and June, demand is still growing due to state measures, such as using the produce in B10 diesel production. From March 1, B10 diesel will be available at all service stations, raising usage of oil palm fruit this year to two million tons, or two-thirds of the national production. With imports of the crop restricted to Khlong Toei Port, and meters being installed to monitor stocks more efficiently, Mr. Wichai voiced confidence the price of oil palm fruit will be maintained.

The DIT chief noted state stocks are actually below their 300,000-ton requirement with only 230,000 tons held in government silos, following palm oil use in fuel production. After a replenishment of stocks, he said the price of oil palm fruit won’t dip below five baht per kilogram.

As for fruit sales being affected by the COVID-19 situation, it was indicated that measures have been prepared to offset the impact such as a reduction in tourist numbers from China who would usually buy up durian. The Thai Ministry of Commerce will turn its focus to domestic sales and has begun coordinating with airlines to feature Thai fruit in-flight, and with retailers to organize fruit fairs set to start in the North in March.

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