Illustrative photo (Source: think4photop/Shutterstock.com)

Bangkok (VNA) – The Thai government is making efforts to sell some of its domestic supply of raw palm nuts and crude palm oil to ease its current high stock of 400,000 tonnes of oil, compared to the normal level of 250,000 tonnes.

Earlier this month, the National Oil Palm Policy Committee, chaired by Deputy Prime Minister Prawit Wongsuwon, approved a proposal to purchase 200,000 tonnes of crude palm oil by the state-run Electricity Generating Authority of Thailand (Egat).

The Ministry of Energy is speeding up a plan for Egat’s purchase after it was acknowledged by the cabinet.

Energy Minister Siri Jirapongphan said the first batch, totalling 100,000 tonnes, should be obtained within 15 days, with the shipment date expected to fall on May 20.

He said the remaining 100,000 tonnes will be bought in June and July following a purchasing plan proposed by the Ministry of Commerce.

Egat will use 45,000-50,000 tonnes of crude palm oil per month for power generation at its Bang Pakong plant in Chachoengsao province. Previously, in April, the agency completed the purchase of 160,000 tonnes of crude palm oil for power generation.

According to Siri, the cost of power generation at the Bang Pakong plant is higher than that of those using natural gas, though generation quality is similar. The cabinet has ordered Egat to cooperate with the Ministry of Finance to handle the issue and promote a public agreement because the higher cost will affect consumers.

Thailand currently houses 144 warehouses of crude palm oil nationwide. –VNA