MARKET DEVELOPMENT
Thai Commerce Ministry to Propose Buying Oil Palm at 4.20 Baht A Kilo
Thai Commerce Ministry to Propose Buying Oil Palm at 4.20 Baht A Kilo
20/05/2015 (ThaiVisa News) – The Ministry of Commerce will propose to the National Palm Oil Policy Committee today to regulate the price of palm fruit with 17 percent oil content, to be sold to refineries and middlemen at 4.20 baht a kilogram.
Commerce Minister Gen. Chatchai Sarikalya further explained that oil palm growers would have to absorb the transportation cost if they decided to sell palm fruit to middlemen. In the proposal, provincial governors will be tasked with overseeing the process, in order to ensure fairness.
As for long-term solutions to the low oil palm price, the Commerce Minister would ask the Ministry of Agriculture and Cooperatives to develop a better strain of oil palm and also propose the construction of palm oil tanks to store raw palm oil when the produce starts flooding the market.
He also touched upon a suggestion that the Public Warehouse Organization (PWO) purchase and store raw palm oil from refinery and selling it back to the market when demand precedes supply. General Chatchai said the PWO would only buy the oil when there are no other options available.
Commerce Minister Gen. Chatchai Sarikalya further explained that oil palm growers would have to absorb the transportation cost if they decided to sell palm fruit to middlemen. In the proposal, provincial governors will be tasked with overseeing the process, in order to ensure fairness.
As for long-term solutions to the low oil palm price, the Commerce Minister would ask the Ministry of Agriculture and Cooperatives to develop a better strain of oil palm and also propose the construction of palm oil tanks to store raw palm oil when the produce starts flooding the market.
He also touched upon a suggestion that the Public Warehouse Organization (PWO) purchase and store raw palm oil from refinery and selling it back to the market when demand precedes supply. General Chatchai said the PWO would only buy the oil when there are no other options available.