Thousands of palm growers occupy the four-lane Phetkasem Road in Chumphon’s Tha Sae district yesterday to pressure the government to bolster falling palm oil prices. AMNART THONGDEE

18/12/2012 (Bangkok Post) - Palm oil prices have fallen to less than three baht a kilogramme, not enough to cover production costs, farmers say.

Farmers in the South, the largest area for palm oil production, have made numerous requests for help from the government, but they are not satisfied with the response.

The result? For much of yesterday, people had a very hard time driving to or from the main southern provinces.

That's because at least 3,000 palm oil farmers in Chumphon and seven other southern provinces set up two road blockades in Chumphon, blocking Phetkasem road and the Asia Highway, the two main routes through the area.

The farmers were demanding that the government take urgent action to ensure that factories would pay at least 5 baht per kilogramme for palm oil and to lower fertiliser prices.

The drastic action, their leaders said, was due to the government's failure to keep its promises.

They were particularly angered at the cabinet's failure to discuss their demands last Monday, as they said had been promised.

The cabinet instead referred the matter to the National Palm Oil Policy Committee which is not scheduled to meet until today.

These palm oil farmers, mainly from the Chumphon area, could be out again if a long-term price agreement is not reached soon. AMNART THONGDEE

Around two o’clock this morning, however, leaders of the palm oil group called off their blockade after having received assurances that the price of palm oil will be raised to at least four baht a kilogramme.

They say this is a short-term agreement that will allow the farmers and their families to make it through the festive season. What happens after that is still not clear.