MARKET DEVELOPMENT
Palm Oil Price Increase Unlikely as Supply Still Sufficient
Palm Oil Price Increase Unlikely as Supply Still Sufficient
03/01/2014 (National News Bureau of Thailand) - The Thai Oil Palm and Palm Oil Association confirms there is no need to increase palm oil price at present since supply is still sufficient for domestic consumption. The association suggests the government let palm oil price move in line with the market mechanism.
The association’s secretary-general Wiwan Boonyapratheeprat said currently there was a normal level of palm oil stock of 230,000 tons, decreasing from 300,000 tons mid last year. Despite the drop in supply, there was enough palm oil for consumption and the production of bio-diesel B7 scheduled to start in March this year. A price increase was therefore not necessary, the secretary-general said.
Ms Wiwan also urged the government to allow palm oil price to be determined by supply and demand more so that oil palm farmers have higher income when demand increases.
The current price of palm oil for consumption is set by the government at 42 baht a liter. The price of crude palm oil is around 30-33 baht a kilogram.
The association’s secretary-general Wiwan Boonyapratheeprat said currently there was a normal level of palm oil stock of 230,000 tons, decreasing from 300,000 tons mid last year. Despite the drop in supply, there was enough palm oil for consumption and the production of bio-diesel B7 scheduled to start in March this year. A price increase was therefore not necessary, the secretary-general said.
Ms Wiwan also urged the government to allow palm oil price to be determined by supply and demand more so that oil palm farmers have higher income when demand increases.
The current price of palm oil for consumption is set by the government at 42 baht a liter. The price of crude palm oil is around 30-33 baht a kilogram.