Instant noodle manufacturers in Thailand have finally received government approval to increase the retail price of noodle packets. The Department of Internal Trade (DIT) is now requiring that manufacturers deliver reports on actual production costs.
The price of instant noodles from some brands will go up 1 baht per pack in response to requests by manufacturers since early this year to allow price hikes.
The price of instant noodles have remained unchanged for the past 14 years, as the product is considered a controlled good by the Central Committee on the Price of Goods and Services. The latest adjustment was made in late 2008, when the price was raised from 5 baht to 6 baht.
DIT Director-General Wattanasak Sur-iam said the department acknowledged increasing costs faced by the manufacturers and has approved the price hike for no more than 7 baht per pack, which is lower than the manufacturers’ original request of 8 baht.
The new adjustment will be reflected first for products from three manufacturers, namely Mama from Thai President Foods, Wai Wai from Thai Preserved Food Factory, and Yum Yum from Wan Thai Foods Industry.
The DIT is also currently reviewing the pricing adjustment requests from the manufacturers of Nissin and Sue Sat brands, which will be finalized within a week. The department demands that the manufacturers submit their material cost reports, as well as lower the price accordingly when costs drop.
Pun Paniangvait, President Office Manager at Thai President Foods, said the decision to allow the one baht increase will help relieve burdens faced by manufacturers over the past 18 months. The president noted, however, that the company has yet to decide when to implement the new retail price. (NNT)