16/03/2012 (Bangkok Post) - The Commerce Ministry is mulling dealing with the local palm nut shortage by importing 40,000 tonnes crude palm oil (CPO) from abroad.

It plans to seek cabinet permission to bring in the CPO and sell it to refiners for not more than 30 baht a kilogramme.

Commerce Minister Boonsong Teriyapirom said at that price, refiners could process it into cooking palm oil retailing for 42 baht a litre.

On Wednesday, he said he was considering selling some of the 230,000 tonnes of local CPO reserves to refiners at the low price of 29 baht per kg.

But yesterday, the minister said importing CPO would be more effective in addressing the present seasonal low supply that pushes up the price of palm nuts to more than six baht per kg from four to 4.50 baht.

Cooking oil producers have complained the low supply of palm fruit has pushed up the CPO price to 34-35 baht per kg from 29 baht last year, resulting in expensive cooking palm oil.

They said to reflect the real cost, the retail price should be 50 baht a litre and not the 42-baht cap set by the ministry.

Mr Boonsong expressed confidence the import proposal would not hurt the local CPO industry, as crushers would continue to buy nuts from planters.

"We also don't ban crushers from exporting CPO for higher prices," he said.

Mr Boonsong will ask the Energy Ministry to assign PTT Plc to import the CPO, either this month or next.

PTT is familiar with CPO sellers abroad, and it would not be difficult for the state oil firm to bring in an extra amount for use in the food segment, he said.

He added his ministry will allow the refiners' association to manage the imported CPO among its members.