Increased production of palm results in price drop in Thailand

Published 2021년 3월 14일

Tridge summary

Thailand is facing a palm oil crisis due to an oversupply of crude palm oil (CPO), with stocks exceeding the required 2.5 million tons, leading to a drop in prices. This has affected farmers and exporters, with the price of palm oil falling from 7 baht per kg to 5 baht per kg. The high cost of CPO, used in biodiesel production, is also causing issues for this sector. Retailers are limiting palm oil sales and there are concerns about the structure of the palm oil industry. The Ministry of Commerce is taking steps to reduce fees and fix prices to help consumers, while also addressing industry balance and structure. The source emphasizes the need for the government to solve industry problems by creating a balance and either raising prices or reducing costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The palm crisis has come for another year. If the short story goes back to September 2020, there is a problem of 500,000 tons of crude oil stocks (CPO), which has exceeded the amount of the stock for stability that should be 2.5 hundred thousand tons, dragging "the price has dropped to 3 baht per kg". Help with shipping cost To encourage exporters to hasten stocking out overseas And promote biodiesel production Ready to use an income insurance scheme to help farmers who are suffering from falling prices By January 2021, the CPO stock began to decline to 150,000 tonnes and the crisis began to 90,000 tonnes in February 2021 when the supply situation was tight - the stock was reduced - a new round of output will be released at the end of March. Began to see the department stores limit the amount of palm oil sales, 1 bottle per person or not more than 3 bottles at that moment, the palm fruit price level has climbed up to 7 baht per kg, CPO price 39-40 baht per kg, more expensive than ...

Source: Prachachat