25/01/2011 (Bangkok Post) - The first lot of 20,000 tonnes of imported crude palm oil will reach Thailand tomorrow to ease the current shortage.

Thai officials said the remaining shipment of 10,000 tonnes of crude palm olein will arrive on Friday.

All the oil will be distributed to local refinery factories for making cooking palm oil and released to the market within the next two weeks at 47 baht per litre or less, according to government policy.

The government paid US$1,289 a tonne for crude palm olein from Singapore-based Wilmar Co, said Anukul Tamprasit, president of the state enterprise Public Warehouse Organisation (PWO), which is responsible for the imports.

He said the government is considering importing more after a survey found there are critical shortages in the market.

Vatchari Vimooktayon, the director-general of the Internal Trade Department, admitted the 30,000 tonnes might be insufficient.

Yanyong Phuanrach, permanent secretary of the Commerce Ministry, said the ministry let the market react freely to this point because it was obliged to take care of both farmers and consumers.

Import prices from Malaysia and Indonesia have continually increased, and the southern office of the Bank of Thailand projects the price of fresh palm nuts will stay at the high level of six to seven baht a kilogramme this year, as demand for consumers and biodiesel increases by 5.1% from last year. Supply is expected to stagnate at last year's level because of drought.