Bangkok: Mr. Pichai Naripthaphan, Minister of Commerce, has mandated rigorous control over the purchasing of palm oil and rubber, focusing on preventing farmer exploitation and enhancing market fairness. He has dispatched a team from the Department of Internal Trade to enforce these measures, aiming to ensure compliance with purchasing laws and regulations.
According to Thai News Agency, the recent increase in palm oil production, coupled with a temporary halt in purchasing by extraction plants during the Songkran holidays, led to a decline in prices. Despite this, prices remain higher than the previous year. The Department of Internal Trade has been instructed to ensure operators clearly display purchasing prices and oil percentages, and to enforce the use of accurate scales to avoid any form of exploitation. Any discrepancies found will result in strict legal action.
For rubber, the Ministry has classified it as a controlled product, requiring businesses purchasing over 5,000 kg to report volumes and storage locations. This move aims to maintain transparency and prevent fraud in the domestic market. Strict supervision will be applied to ensure compliance with displayed prices and standard scales, safeguarding farmers from unfair practices.
Mr. Pichai also emphasized the potential for increased export demand, which could drive up domestic prices. Efforts are underway to identify new export markets for palm oil and rubber products, potentially benefiting both farmers and the industry. The Ministry aims to boost export volumes, which could lead to higher domestic prices for these agricultural products.
The Office of Trade Policy and Strategy has been tasked with developing strategies for the rubber industry's adaptation to global trade changes. While the global demand for rubber continues to rise, challenges such as oversupply and price declines remain. Despite being the top rubber producer globally, Thailand ranks 11th in production per rai, highlighting the need for strategic improvements in production and market expansion.
Mr. Pichai encouraged farmers to report any unfair practices to relevant authorities, assuring them of the Ministry's commitment to using legal mechanisms and proactive management to stabilize prices. Continuous monitoring and cooperation with related agencies will aim to ensure transparency and fairness in the trading of these essential products.