16/01/2008 (Forbes), Bangkok - Thailand will import 30,000 metric tons of palm oil over the next month to ease fears of a shortage due to its growing use in biofuels, commerce minister Krirk-Krai Jirapaet said Wednesday.

Worries over a possible shortage had led to calls for Thailand to ban exports of palm oil to ensure enough supply for domestic cooking oil needs as well as its growing use as an ingredient in biodiesel.

After meetings between the government, cooking oil producers and palm oil extractors, the commerce ministry decided that additional imports would ease concerns of a shortage ahead of the harvest time in March.

'There is no shortage of palm oil stocks in the market, according to our investigations Tuesday around Bangkok and other provinces,' Krirk-Krai said.

The minister rejected calls for a ban on exports, saying panic among consumers was caused mainly by fears over the rising price of palm oil, due to its increased use in biodiesel.

'Some 109,000 tons of palm oil will come into the market by March 1, which is its high season (for harvests). That will provide enough palm oil for the demands from both the food and energy industries,' he said.

Rising global oil prices have caused many countries, including Thailand, to look for alternative energy sources such as biofuel made from palm oil, which has sent prices for the commodity soaring.