MARKET DEVELOPMENT
Democrat Wants Inquiry Into Palm Oil Imports
Democrat Wants Inquiry Into Palm Oil Imports
08/05/2015 (Bangkok Post) - Democrat Party member Thaworn Senneam has called on the prime minister to investigate the importing of 50,000 tonnes of crude palm oil which led to an oversupply and falling prices for domestic palm oil.
In January, the National Oil Palm Policy Committee decided to import 50,000 tonnes of crude palm oil as a precaution against a shortage of refined cooking oil on store shelves.
He said the government should have ordered a stocktaking of supplies before allowing the importation of crude palm oil on Jan 20, 2015. The country had about 250,000 tonnes in reserve in December 2014 and as much as 160,000 tonnes in January 2015.
Mr Thaworn said with that amount in stock Thailand would not have faced a shortage as the harvest season was due to begin in February.
Following the importation, the price of fresh plam nuts dropped from 6 baht/kg to 2.5 baht/kg, although the government approved a three-million-baht budget to buy fresh palm kernels from farmers at 4 baht/kg to stabilise prices.
Mr Thaworn suspected there were irregularities in the decision to import palm oil, because there was already an adequate supply available. He proposed attacking the problem through the zoning of palm plantations and a crackdown on palm oil smuggling. He said the commerce minister should be sacked if these measures fail.
In January, the National Oil Palm Policy Committee decided to import 50,000 tonnes of crude palm oil as a precaution against a shortage of refined cooking oil on store shelves.
He said the government should have ordered a stocktaking of supplies before allowing the importation of crude palm oil on Jan 20, 2015. The country had about 250,000 tonnes in reserve in December 2014 and as much as 160,000 tonnes in January 2015.
Mr Thaworn said with that amount in stock Thailand would not have faced a shortage as the harvest season was due to begin in February.
Following the importation, the price of fresh plam nuts dropped from 6 baht/kg to 2.5 baht/kg, although the government approved a three-million-baht budget to buy fresh palm kernels from farmers at 4 baht/kg to stabilise prices.
Mr Thaworn suspected there were irregularities in the decision to import palm oil, because there was already an adequate supply available. He proposed attacking the problem through the zoning of palm plantations and a crackdown on palm oil smuggling. He said the commerce minister should be sacked if these measures fail.