BANGKOK, Thailand – The government is drafting new legislation to safeguard palm oil farmers, ensuring fair income distribution and job security as the industry faces upcoming policy shifts. The move comes in response to the planned termination of biodiesel price subsidies by 2026, a decision that could significantly impact farmers and industry stakeholders. The proposed law aims to create a sustainable market framework for palm oil producers while preventing potential economic disruptions.
Deputy Prime Minister and Minister of Energy Pirapan Salirathavibhaga announced that the first meeting of the Drafting Committee for the Palm Oil Industry Promotion Law was held on February 5th. He emphasized that the legislation would provide long-term stability for palm oil farmers. The Fuel Fund’s decision to phase out subsidies for biodiesel blending has accelerated the government’s efforts to support the industry.
To lead the drafting process, Pirapan appointed Atavit Suwanpakdee as chairman of the committee and established an additional working group to ensure efficient progress. The proposed law will be modeled after the Cane and Sugar Act of 1984, which has successfully provided structural support for sugarcane farmers.
The Ministry of Energy is collaborating with the Ministry of Industry, led by Minister Akanat Promphan, to address challenges faced by palm oil farmers. With the biodiesel subsidy program set to expire in 2026, the government is working to implement policies that will stabilize the market and expand opportunities for palm oil producers.
Minister Pirapan expressed confidence that the new legislative initiative will protect farmers from market volatility while fostering long-term growth and sustainability in Thailand’s palm oil industry. As policymakers move forward, the goal remains clear: ensuring that farmers and industry players can thrive in a changing economic landscape.
