MARKET DEVELOPMENT
Palm Oil Price Starts to Rise
Palm Oil Price Starts to Rise
16/06/2015 (NNT) - The Public Warehouse Organization (PWO) has indicated it cannot perform intervention buying of crude palm oil at this time, as the market price has exceeded the predetermined intervention price.
The government introduced the policy of intervention buying to stabilize low prices in the palm oil industry. The National Oil Palm Policy Committee set the intervention price for crude palm oil at 26.20 baht per kg.
However, the market price for crude palm oil has rebounded to 27-28 baht per kg. The price of raw palms increased to an average of 4.60 baht per kg, thanks to the declining supply.
PWO Chairman Jintana Chaiyawonnagal said her agency will soon discuss other financial aid solutions with the refinery operators.
She said the intervention price can be adjusted as the government deems necessary. However, if the predetermined price is too high, then palm oil refineries have to mark up the price of processed palm oil to compensate for the increasing cost.
The government introduced the policy of intervention buying to stabilize low prices in the palm oil industry. The National Oil Palm Policy Committee set the intervention price for crude palm oil at 26.20 baht per kg.
However, the market price for crude palm oil has rebounded to 27-28 baht per kg. The price of raw palms increased to an average of 4.60 baht per kg, thanks to the declining supply.
PWO Chairman Jintana Chaiyawonnagal said her agency will soon discuss other financial aid solutions with the refinery operators.
She said the intervention price can be adjusted as the government deems necessary. However, if the predetermined price is too high, then palm oil refineries have to mark up the price of processed palm oil to compensate for the increasing cost.