TDRI supports floating the price of palm oil

BANGKOK, 22 February 2011 (NNT)- President of the Thailand Development Research Institute (TDRI) Nipon Puapongsakorn has said that the government should float the price of palm oil until the product shortage is solved, adding that in the meantime manufacturers should be allowed to freely import both the semi purified and refined palm oil.

Mr. Niphon warned that the shortage problem could exacerbate if the government refuses to lift the current quota of 20,000-30,000 tons of palm oil. He further explained that retailers will continue to hoard the products and sell them at a higher price when the demand is high.

He said the ceiling price of 47 baht per liter is of no use when the products are not there on the shelves. People are already paying more than the Commerce Ministry’s price for a liter of palm oil at present, he added, it should not be a concern for anyone as long as there are enough products in the market.

He also expressed his confidence that his approach to the shortage crisis is effective as it will bring the prices of both the palm oil and soya oil down, and also prevent retailers from further hoarding the products. It will also help the government save 1 billion baht under the Commerce Ministry’s proposal for the government intervention to bring the price down.