BANGKOK, 9 April 2015 – The Ministry of Commerce has asked the private sector to help relieve financial problems of oil palm growers by purchasing their produce.
During a meeting with oil palm growers and processors, Commerce Minister General Chatchai Sarikulya called on private operators to buy fresh palm oil from small-scale agriculturists owning farming areas of no more than 50 rai, to enable this group of farmers to cope with the drop in product price led by the rapid expansion of oil palm farming.
General Chatchai did not specify the rate at which operators should pay farmers, but suggested that prices be fair to both agriculturists and processors. The private sector agreed to comply with his proposed short-term solution.
As for long-term solutions, the Commerce Minister will discuss his plan to revamp the industrial structure of the palm oil industry with related sectors to prevent a further price decline.
The revamp will focus on the zoning of oil palm farming, regulation of refinery numbers, and the actual demand for alternative energy. Results of the meeting will be submitted to the National Palm Oil Committee for consideration.
Fertilizer companies meanwhile have decided to lower fertilizer prices by at least five percent for an initial six months, from April 16 to October 16 to help farmers reduce production costs.
