25/01/2011 (The Nation Multimedia) - The Commerce Ministry will propose that the National Oil Palm Policy Committee permit the import next month of another 50,000 tonnes of crude palm oil after finding that supplies are even lower than previously thought.

The move follows a green light earlier this month for the import of 30,000 tonnes of the oil from Malaysia in a bid to calm the skyrocketing price of the commodity.

After meeting with manufacturers and concerned agencies, the ministry found domestic palm oil stockpiles were more than 50 per cent lower than Agriculture Ministry predictions.

Production in December was expected at 75,000 to 80,000 tonnes, but came in at just 45,000 tonnes. Production in January was expected at 110,000 tonnes, but signs are it will reach just 40,000 tonnes.

Vatchari Vimooktayon, director-general of the Internal Trade Department, said the country needed more crude palm oil to address the current shortage and skyrocketing prices.

The import of 50,000 tonnes should be completed next month to ensure minimal impact on domestic production, which will be harvested in early March.

In addition, the ministry plans to control the price of cooking palm oil sold in buckets and plastic bags after finding that retail prices have surged.

Chatchai Chookaew, advisor to the Commerce Minister, said prices would be controlled at Bt45 per litre, lower than the controlled price of Bt47 for bottled cooking oil due to lower packaging costs.