01/02/2011 (Bangkok Post) - Bottled palm oil manufacturers insist the government still needs to import more crude palm oil because of the domestic shortage.

Asanee Mallamphut, chairman of the Palm Oil Refinery Association and an executive of Morakot Industries, the producer of Morakot palm oil, said more imports were still necessary.

The 30,000 tonnes of imported palm oil previously approved fail to meet the current shortfall, he said.

"The figures by the Internal Trade Department that show the country's stocks of crude palm oil stand at only 50,000 tonnes, half the normal level, are clear that we are still in trouble," he said.

Mr Asanee also insisted a short supply in bottled palm oil was not because of hoarding by operators, as indicated by rising palm nut prices, which now stand at 10 baht per kilogramme, up from seven baht, and higher crude palm oil prices, now up to 70 baht per kg from 38 baht earlier this year.

Pussadee Kampanthong, deputy director-general of the Internal Trade Department, said the Commerce Ministry would today seek permission from the national oil palm committee to import another 100,000 tonnes of crude palm oil to ease the domestic shortage.

"The situation has not improved as demand remains the same despite the Agriculture Ministry reports that new palm output is being released and there is no need for more imports," she said.

"Our stocks of crude palm oil remain low at 50,000 tonnes, while the actual reserves should stand at between 120,000 tonnes and 150,000 tonnes.

"The accelerated harvesting of green [unripe] palm nuts by planters to cash in on the high prices makes relatively low amounts of oil."

Vatchari Vimooktayon, director-general of the Internal Trade Department, said earlier that Thailand may need to import 200,000 tonnes of crude palm oil to maintain reserves at the appropriate volume of between 120,000 tonnes and 150,000 tonnes at all times.

Ms Pussadee said the new imports would be allocated mainly to refiners and food processors.