18/02/2011 (Bangkok Post) - The Department of Special Investigation may be asked to look into suspected palm-oil hoarding that has led to a critical shortage of cooking oil for months.

The stepped-up investigation follows reports that four refiners given permission to import palm olien used it to make cooking oil form sale under their own brands at high prices. The oil was supposed to have been marketed at low prices under the Commerce Ministry's Blue Flag scheme.

Deputy Prime Minister Suthep Thaugsuban said he welcomed the DSI's involvement in protecting consumers and cracking down on opportunistic traders.

Commerce Ministry spokesman Chatchai Chukeaw said any DSI investigation would be conducted in good faith.

"If it is found that the hoarding entity has a relationship with a large political party, the DSI should immediately arrest the wrongdoers without information leakage," he said.

The 30,000 tonnes of imported palm olien were allocated to 10 producers on condition that they sell the cooking oil at no more than 47 baht a litre.

However, consumers say the oil is still very hard to find in retail stores and costs 66-67 baht a litre.

Palm oil producers maintain that all 30,000 tonnes of imported palm olien were being refined under the close watch of the Commerce Ministry.

"The reports that quota-allocated companies did not process the olien for the ministry are not true," said Asanee Mallamphut, chairman of the Palm Oil Refining Association. "Those who received the quota have to report to officials daily how much they refined and to whom they have distributed it."

Refiners that received quotas include Morakot Industries, Lamsoon, Palm Oil Energy Industries, and TS Industry Co.

Commerce Minister Porntiva Nakasai denied reports four firms might have breached agreements with the ministry.

"I will instruct Internal Trade Department to ask them why they did not release the products to the market," she said.

The opposition raised Mrs Porntiva's mismanagement of palm oil in the censure debate this week.