Bangkok: The Department of Internal Trade has reported a rise in palm oil prices, driven by the B20 biodiesel program and robust export growth. The department visited palm oil farmers in the central region, emphasizing that exports are proceeding normally while the promotion of B20 biodiesel is boosting domestic demand for crude palm oil.
According to Thai News Agency, Mr. Wittayakorn Maneenet, Director-General of the Department of Internal Trade, addressed concerns raised by oil palm farmers in Saraburi and Pathum Thani provinces regarding palm oil prices and exports. In response, Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan, instructed the department to monitor the situation closely and resolve any issues promptly.
The Department of Internal Trade engaged with farmers and stakeholders, including Mr. Manas Phuttharatt, President of the Thai Palm Oil Growers Federation, to gather suggestions and assess the current situation. Mr. Wittayakorn assured that the Ministry of Commerce is managing the balance between stocks, domestic use, and exports to ensure fair pricing. Since April 7, 2016, over 200,000 tons of palm oil have been exported through 11 permits.
Rising global energy prices have increased the demand for crude palm oil in the energy sector. The government's policy to promote biodiesel aims to reduce diesel imports, with current demand for crude palm oil for biodiesel production exceeding 100,000 tons monthly. More than 200 service points for B20 fuel are available nationwide, supported by a pricing strategy favoring B20 over B7.
Mr. Wittayakorn stated that these factors have driven palm oil prices to 6.80-7.20 baht per kilogram, up from 6.60-7.00 baht per kilogram last week, indicating an improving market trend. The Department of Internal Trade also found that palm oil extraction plants are operating at full capacity without long queues, as produce enters the market steadily.
The Department emphasized purchasing palm fruit based on quality to ensure fairness and incentivize improved product quality. This approach aims to raise the standards of Thai palm oil in the long term.
Mr. Manas Phuttharatt expressed farmers' satisfaction with the improved price levels, noting a more relaxed purchasing situation compared to last year. He urged the government to continue monitoring the purchasing process to maintain fairness and stabilize palm oil prices.