Bangkok, October 31, 2024 — The Europe Today: Thailand’s Department of Internal Trade has temporarily banned the export of raw palm oil in response to a drop in production caused by drought and plant diseases. This restriction, effective until December, is intended to stabilize domestic prices and maintain adequate supply levels.
Commerce Minister Pichai Naripthaphan noted that current market conditions show a substantial decrease in palm oil output, warranting government intervention to protect consumers and farmers from price surges. Deputy Director-General Goranij Nonejuie reported that raw palm oil prices currently range between 8-9 baht per kilogram, emphasizing, however, that bottled palm oil prices require ongoing scrutiny.
In coordination with the Palm Oil Extraction Mills Association and the Palm Oil Refinery Association, the Commerce Ministry is working to manage stock levels while delaying any price increases. Both associations have pledged to suspend exports to aid the government’s stabilization efforts and to keep crude palm oil reserves above 200,000 tons, with a reassessment scheduled for January 2025.
The Department of Internal Trade has warned against price manipulation, with violators facing penalties of up to seven years in prison or fines of up to 140,000 baht. To address any potential price hikes in the vegetable oil market, the department will continue monitoring prices, and consumers are urged to report irregularities via the department’s hotline or mobile application.
