The price of domestic fresh palm nuts hit a two-decade low in April at 1.60-1.80 baht per kilogramme.(Photo: bangkokpost.com)
Bangkok (VNA) – The Thai Government is planning to introduce more measures to shore up domestic oil palm prices on top of the price guarantee scheme.
According to Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit, the additional measures include the compulsory order for all petrol stations nationwide to sell biodiesel B10, replacing B7, from January 1, 2020.
The Ministry of Commerce vowed to tighten measures to prevent oil palm smuggling from neighbouring countries, and speed up exports of crude palm oil (CPO), notably to India.
Another measure is to install CPO automatic level gauges at crushing mills and refineries. The automatic level gauges will enable regulators to observe real-time information on CPO stocks, giving them verifiable data to help with decision-making and prevent future smuggling.
The state-run Electricity Generating Authority of Thailand (Egat) will also be ordered to purchase palm oil to produce electricity.
In August, the cabinet approved a package worth 59 billion THB (1.93 billion USD) in price guarantee and subsidy schemes for rice and oil palm. Of the total budget, 13.3 billion THB is for the price guarantee programme for rice, 21.4 billion for oil palm and 25 billion to subsidise production costs for rice farmers.
Thailand is expected to produce about 16.8 million tonnes of fresh palm nuts this year or about 3.02 million tonnes of crude palm oil. Of the total crude palm oil output, 1.2 million tonnes are scheduled for consumption and 1.2-1.3 million tonnes for power production.
The price of domestic fresh palm nuts hit a two-decade low in April at 1.60-1.80 baht per kilogramme, far below growers' costs and the average price of 3.45 baht per kg last year and four baht per kg in 2017. The prices of fresh palm nuts are quoted at 2.55-3.20 baht per kg./.
VNA
