BANGKOK: Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
The restrictions, expected to last until December, aim to stabilise local prices and ensure adequate stock levels.
Commerce Minister Pichai Naripthaphan highlighted that current market conditions reflect a significant decrease in oil palm output, necessitating measures to protect both farmers and consumers from inflated prices.
Goranij Nonejuie, deputy director-general of the department which comes under the Commerce Ministry, confirmed that prices are currently satisfactory at 8-9 baht per kg, but emphasised the need to monitor bottled palm oil prices closely.
The ministry has coordinated discussions with the Palm Oil Extraction Mills Association and various retailers to manage stock levels and delay price adjustments for consumers.
The extraction mills association and the Palm Oil Refinery Association have pledged to cooperate with the government's efforts. They have agreed to suspend exports and work together to stabilise prices.
Additionally, retailers and wholesalers have committed to maintaining reasonable prices for bottled palm oil and implementing promotional offers to alleviate the impact on consumers.
With a crude palm oil stock exceeding 200,000 tons, the associations have committed to suspending exports until the situation improves, with plans to revisit this in January 2025.
To prevent price gouging, the department has warned that violators could face up to seven years in prison or a fine of up to 140,000 baht.
Concerns about rising vegetable oil prices will continue to be monitored.
Consumers are encouraged to report any irregularities via the department hotline or their mobile application. - The Nation/ANN
