Bangkok: The Department of Internal Trade has partnered with fresh markets, central markets, and gas stations to release 3 million bottles of palm oil at affordable prices to provide more options and alleviate living costs for consumers. The government has confirmed there is no intention to import palm oil.
According to Thai News Agency, the Department of Internal Trade has been monitoring the production and marketing conditions of palm oil. Currently, the price of palm fruit is elevated, ranging from 9.00-10.40 baht per kilogram. This increase is attributed to drought conditions since mid-2024 and flooding in various southern provinces late last year, leading to smaller and incomplete palm bunches and a lower extraction rate of 17%. While overall production is expected to rise by more than 10-15% in February, a greater volume is anticipated to enter the market from March onward, potentially normalizing bottled palm oil prices.
Mr. Witthayakorn Maneenet, Director-General of the Department of Internal Trade, stated that Mr. Pichai Naripthaphan, Minister of Commerce, has engaged with leading oil producers to reduce biodiesel production, thereby increasing palm oil stocks in the system. He affirmed that despite international prices being 12 baht per kilogram lower than domestic prices, the government will not import palm oil to protect domestic palm farmers' interests. The department will continue to monitor palm oil production and pricing closely, given the increase in crude palm oil prices.
To mitigate consumer impact and reduce living expenses, the Department of Internal Trade is distributing low-priced bottled palm oil to broaden consumer access. Collaborations with the Thai Fresh Market Association, the Thai Agricultural Wholesale Market Trade Association, PT Maxmart, and PT gas stations in Bangkok and surrounding areas will facilitate sales at 380 points beginning next week, with a target distribution of 3 million bottles.