BANGKOK, 12 September 2015 – The Ministry of Commerce is purchasing palm fruits at the price of no less than 3.20 baht per kilogram, one baht lower than the previous benchmark price in the country.
Chutima Bunyapraphasara, Permanent Secretary for Commerce, said the price of palm oil traded in the country is relatively higher than the actual price in the international market, which prompted domestic reserves to hit 450,000 tons, 200,000 tons higher than the average amount.
In order to solve the oversupply, the ministry has decided to buy palm fruits at the price of 3.20 baht per kilogram.
According to her, the new buying price reflects the actual price in the global market.
Despite the new policy, the permanent secretary said palm growing is still profitable, given that the cost, excluding transportation, only ranges from 2.50 baht to 3.13 baht per kilogram.
