20/01/2015 (NNT) - The private sector has expressed discontent with the Cabinet’s decision to import 50,000 tons of palm oil, fearing it will lead to an oversupply.

President of the Palm Oil Farmers Association of Thailand Manat Phuttharat submitted a letter to Prime Minister Prayut Chan-o-cha, asking the government to delay importing the palm oil. The president said ripe oil palms would enter the market more in February, making it possible that the imports would lead to a palm oil oversupply. He added that palm oil from other countries had lower quality than the domestically grown.

Deputy Minister of Agriculture and Cooperatives Amnuay Patise said the palm oil imports had been proposed by the National Palm Oil Policy Committee. If Thailand did not import palm oil to meet with the demand of 200,000 tons, there would be a shortage of palm oil in February this year, said the deputy minister.

The Public Warehouse Organization will distribute the imported palm oil to the private sector. As for the domestic palm oil price, the government will set it five baht/kilo in order to prevent the farmers from worrying that the import will affect the domestic price.