08/07/2024 (Bangkok Post) - Thailand expects to export 800,000 tonnes of crude palm oil this year, aiming to stabilise the prices of local fresh palm nuts.

Wattanasak Sur-iam, director-general of the Internal Trade Department, said the local price of domestic fresh palm nuts continues to improve, increasing to more than 5 baht per kilogramme after plummeting in April to May because of a glut.

He said the department has a plan for continued exports to reduce the excess supply, which should help increase the price of palm nuts.

In the first half this year, Thailand exported roughly 400,000 tonnes of crude palm oil, with the same amount projected for the second half, totalling 800,000 tonnes in 2024, similar to the previous year.

Thailand's crude palm oil can compete in the global market because the local and global price levels are similar, said Mr Wattanasak.

The current price of Thai crude palm oil is 33.25 baht per kg, up from 32.63 baht last month, while the price in the global market is 32.72 baht per kg, up from 31.35 baht last month.

Demand for crude palm oil for domestic consumption totals 110,000 tonnes, while 120,000 tonnes is for biodiesel production and 800,000-900,000 tonnes are for export, with India the main market.

Thailand has crude palm oil stocks of 300,000 tonnes.

The baht depreciation should be beneficial to the country's crude palm oil exports, he said.

The department instructed palm nut buyers and palm oil extraction plants to refrain from making palm nuts fall unnaturally.

Offenders could face a prison term of up to five years, a fine of 100,000 baht, or both, according to the Price of Goods and Services Act of 1999.

The order also required operators of extraction plants to report their operations to the department on a daily basis.

The figures requested are the amount of palm fruit purchases, the purchase rate and the quantity of extracted oil.

The order stated anyone found buying the fruit below the set price could face a maximum jail term of seven years, or a maximum fine of 140,000 baht, or both.

Failure to report the quantity of extracted oil and place of storage risks a maximum jail term of one year, or a maximum fine of 20,000 baht, or both.

The department also ordered officials to inspect the purchases and the accuracy of the scales at dumping yards and palm oil plants to prevent the exploitation of farmers.

Farmers were asked to delay their harvests and cut only palm nuts that are fully ripened to fetch good prices.

In 2024, fresh palm nut production is estimated at 18 million tonnes, similar to the previous year, while crude palm oil is estimated at 3 million tonnes.

https://www.bangkokpost.com/business/general/2824941/palm-oil-exports-put-at-800-000-tonnes