House of Representatives, Economic Cabinet meeting concerned about palm oil price situation. Hoping to push it to not less than 5 baht/kg, which farmers can live with. Given to the Ministry of Agriculture-Commerce-Energy Join in finding measures to maintain price stability urgently.
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance Announcement of the meeting results Economic Cabinet chaired by Prime Minister Settha Thavisin. The meeting was concerned about the price situation of palm oil which in May The price that farmers can sell is 3.70 baht per kilogram. which is lower than production costs The price that farmers can live on must be around 5 baht per kilogram. Therefore, we must find a way to maintain stability.
However, oil palm is an energy crop that has a cycle of production. During the period when the produce is produced, the price is low. During periods of low production, prices will be high, which has been a long-standing problem.
For the production and distribution cycle F
armers will sell them to the buying yard. Middlemen will buy and resell to palm oil mills. It is then sold to B100 refineries even though it has been mixed with diesel to become biodiesel. But there is still excess production due to demand, which causes prices to fall in some periods. At present, less produce has begun to be released to the market, causing prices to increase somewhat. (Information from the Office of Agricultural Economics indicates that Central and important market prices on June 7, 2024 are at 4.60 – 5.10 baht per kilogram)
Therefore, we are going to discuss with various sectors. In order for the purchase price to be in line with the price announced by the Energy Policy and Planning Office (EPPO) to help farmers and the price to stand at not less than 5 baht per kilogram, the Economic Cabinet meeting gave it to the Ministry of Agriculture and Cooperatives. Ministry of Commerce and the Ministry of Energy went together to find measures to balance the price of palm oil.
In the long run, agric
ultural production will be adjusted towards high-value agriculture in line with demand so that there is no excess production, which will result in stable agricultural product prices.
Source: Thai News Agency