Trade and markets
 

Detail

Area
Thailand
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/01/2015
Policy Category
Consumption and marketing
Policy Instrument
Market regulation
Description
Approved an increase in palm oil retail prices, with a view to stimulate the sale of edible oils by local manufacturers.
Notes
In Thailand, recent weather-related drops in palm oil output have resulted in supply shortages of the country’s most widely consumed edible oil. According to official sources, in December, domestic palm oil inventories dropped to 60 000 – 70 000 tonnes, i.e. well below the ‘safety level’ of 200 000 tonnes. To stimulate sales by oil manufacturers, the government has approved a four-Baht increase in retail prices, assuring consumers that prices would not be allowed to exceed Baht 42 per liter (USD 1.29). As a temporary emergency measure, the government also authorized state imports of 50 000 tonnes of palm oil for immediate release on domestic food markets. It also ordered to reduce the proportion of palm-based biodiesel in transportation fuel from 7 percent to 3.5 percent. In past years, the government resorted to similar interventions to address temporary cooking oil shortages.