Palm Oil Production Slows Amid Price Surge

BANGKOK (NNT) – Producers of bottled palm oil are reportedly facing higher costs following a spike in global prices.

World crude palm oil leaped to 62-63 baht/kg from 53 baht/kg during the pre-Songkran period. Fresh palm is currently priced at 13 baht/kg, over three times the state-guaranteed price of 4 baht.

The Ministry of Commerce previously set the ceiling price of bottled palm oil at 70 baht per bottle, though the actual price is now around 77-78 baht per bottle. Manufacturers have been forced to shoulder the excess costs.

Several palm oil producers have since resorted to slowing down their production line, while others are using stocked crude palm oil or mixing palm oil with other types of vegetable oil to prevent shortages.

A number of manufacturers have also started exporting local crude palm oil to foreign nations offering more lucrative deals. Thailand exported about 112,000 metric tons of crude palm oil in March, seven times higher than the previous month. The April figure is likely to continue this trend.