04/01/2012 (The Nation) - Climate change is the factor that worries the Thai Commerce Ministry the most, as it could send food prices skyrocketing and drive up the cost of living for consumers this year.

Vatchari Vimooktayon, director-general of the Internal Trade Department, said natural catastrophes were the only variable in the ministry's measures to manipulate prices that was uncontrollable.

Crop damage from natural disasters could cause food-price inflation, as domestic supplies would be curtailed, while other countries will also face the impacts from climate change, she said.

The government's high subsidies for agricultural goods will also cause higher crop prices and may lead to mark-ups in some food prices this year.

To ensure a low cost of living for consumers, the department plans to work closely with other government agencies in managing supply chains and ensuring fair prices for consumers. For instance, it will tighten cooperation with the Agriculture and Industry ministries to manage the supply chain for sugar.

To ensure adequate supplies of some staples such as palm oil, rice, sugar and canned fish in case of unexpected situations or production fluctuations, the ministry will call for some manufacturers to hold buffer stocks.

However, the department is confident that the prices of other consumer goods will be under control and not shoot up this year, thanks to higher competition. It also expects stable fuel prices.

To increase efficiency in the management of goods prices, the ministry will change some products on its price-control list this year.

It will withdraw soap, shampoo, dishwashing detergent, yoghurt beverages, garlic, instant coffee and paper napkins.

However, farm equipment and service fees for agricultural business will be added as a strategy to ensure low production costs for farmers.

Currently, 41 products are on the price-control list, including rice, cooking oil, milk and student uniforms