MARKET DEVELOPMENT
Commerce Ministry Mulls Oil Palm Import
Commerce Ministry Mulls Oil Palm Import
16/01/2015 (NNT) – The Ministry of Commerce will propose a plan to import oil palm to prevent a possible shortage , at the cabinet meeting next week.
According to Commerce Minister Gen. Chatchai Sareekalaya, the existing 110,000-ton oil palm supply is still far below the standard reserve of 300,000 tons and the actual demand of 135,000 tons. The inadequate stockpile may lead to a possible shortage of oil palms.
To ensure that there is an ample supply of palm oil for consumption, the Ministry of Commerce will suggest the Ministry of Energy replace the production of B7 diesel with that of B3 type, and will propose that it import 40,000-50,000 tons of raw palm oil for the cooking oil industry at the cabinet meeting next week.
Meanwhile, the Public Warehouse Organization will be assigned to oversee the import and the distribution of raw palm oil to producers to regulate the retailed palm-based cooking oil price at no more than 42.50 baht per liter. The plan, if approved, should be implemented within February.
Gen. Chatchai also brushed off fears that the imported palm oil would affect local farmers, saying that the purchase was actually intended to make up for the insufficient supply, which the domestic industry was unable to produce.
According to Commerce Minister Gen. Chatchai Sareekalaya, the existing 110,000-ton oil palm supply is still far below the standard reserve of 300,000 tons and the actual demand of 135,000 tons. The inadequate stockpile may lead to a possible shortage of oil palms.
To ensure that there is an ample supply of palm oil for consumption, the Ministry of Commerce will suggest the Ministry of Energy replace the production of B7 diesel with that of B3 type, and will propose that it import 40,000-50,000 tons of raw palm oil for the cooking oil industry at the cabinet meeting next week.
Meanwhile, the Public Warehouse Organization will be assigned to oversee the import and the distribution of raw palm oil to producers to regulate the retailed palm-based cooking oil price at no more than 42.50 baht per liter. The plan, if approved, should be implemented within February.
Gen. Chatchai also brushed off fears that the imported palm oil would affect local farmers, saying that the purchase was actually intended to make up for the insufficient supply, which the domestic industry was unable to produce.