11/02/2011 (Bangkok Post) - The opposition Puea Thai Party has opened fire on the government and the Commerce Ministry for failing to control the price of consumer goods, particularly cooking palm oil.

Puea Thai MP for Lamphun Sathaporn Maneerat questioned the government and Commerce Minister Porntiva Nakasai in parliament yesterday over price rises for 41 controlled goods.

Mr Sathaporn said the cost of cooking palm oil, shrimp paste and coconut milk was skyrocketing.

He said the ministry should distribute oil to cooperatives for sale to consumers at regulated prices.

Some politicians might have profited from the rising price of palm oil, the MP claimed.

The opposition would expose the alleged irregularities involving palm oil deals during the coming no-confidence debate.

Ms Porntiva said her ministry had tried its best by seeking the cooperation of large wholesalers and retailers to cap the price of basic goods, particularly cooking palm oil.

The ministry had capped the retail price of cooking palm oil at 47 baht a litre. However, palm oil had disappeared from the shelves of several retail stores and other outlets and was being sold at grocery stores and fresh markets for 70 to 72 baht a litre, a source said.

Chada Thaiset, a member for Uthai Thani for the coalition Chart Thai Pattana Party, said the government should set up a fund to solve the shortage of palm oil.

Deputy Prime Minister Suthep Thaugsuban, who chairs the Palm Oil Policy Committee, said the shortage of palm oil on the domestic market was caused by natural disasters such as floods which had wiped out many palm plantations.

The Commerce Ministry has threatened to withhold imported palm olein from refineries that refuse to buy crude palm oil and crushers who refuse to buy fresh palm nuts domestically.

The ministry had given the Public Warehouse Organisation approval to import 120,000 tonnes of palm oil. The first lot of 30,000 tonnes is due to arrive by Feb 20.

The ministry will maintain the price of a one-litre bottle of palm oil at 47 baht and at 45 baht if it is contained in a plastic bag.

Wiwan Boonyaprateeprat, secretary-general of the Thai Oil Palm and Palm Oil Association, said it would be difficult to force refineries to purchase crude palm oil from crushers.

The problem, she said, concerned costs as the local crude oil was priced at 48 baht a litre, higher than the government's capped price of refined palm oil at 47 baht a litre.

Ms Wiwan said palm oil refineries and crushers faced losses of about one billion baht in the second half of last year, forcing several factories to suspend operations.

In Satun, customs officials have seized 4,500kg of smuggled palm oil worth more than 300,000 baht.

Wannawat Thatsanasatian, chief of Satun customs, said yesterday the seized palm oil had been smuggled from Malaysia.

Cooking palm oil is reportedly sold at 52 baht a kilo in Satun, while it is being bought for 45 baht a kilogramme in Malaysia.