BANGKOK, Thailand – The Ministry of Commerce has convened industry representatives and farmers to address a sharp decline in aromatic coconut prices while increasing scrutiny of businesses suspected of operating through nominee arrangements. Commerce Minister Suphajee Suthampun said coconut growers have been affected by falling prices linked to oversupply and difficulties aligning product quality with market demand.
Suphajee said some fresh coconut grading and processing facilities have been unable to purchase produce due to the large volume entering the market. She also said changes in the industry structure have been reported as foreign investors or nominee operators enter various stages of the supply chain, from production to distribution, placing additional pressure on farmers who struggle to sell coconuts at prices that cover cultivation costs.
The ministry convened representatives from the Ratchaburi Provincial Federation of Thai Industries, the Ratchaburi Provincial Farmers Council, the Thai Aromatic Coconut Association, and more than 15 entrepreneurs to review cost structures and market conditions. Authorities are considering measures to manage production levels, adjust pricing systems, and improve product quality to expand export opportunities and reduce the risk of rejected shipments in overseas markets.
Officials also said enforcement will increase against businesses suspected of using Thai nationals as proxies for foreign investors in violation of the Foreign Business Act. The Department of Business Development warned that offenders could face imprisonment, fines, or both. Authorities added that aromatic coconut prices may improve in the coming weeks as demand in key markets such as China rises with the transition out of winter. (NNT)
