Prepare to examine the palm oil price chain. Push farmers to sell for 5 baht/kg.

Bangkok, "Thammanat" reveals preparation to set up a working group to examine the palm oil chain. Prevent distortion of the price mechanism Prepare to register the dumping yard and palm fruit purchasing yard of every crude palm oil extraction factory. Find the reason why the price of palm oil sold by farmers is lower than it should be. Emphasizes that he will push for the price of palm to not be less than 5 baht per kilogram. Captain Thammanat Phromphao, Minister of Agriculture and Cooperatives, said: Has been appointed by the National Oil Palm Policy Committee to be the chairman of the subcommittee to drive the management mechanism to solve oil palm and palm oil problems, which will have the authority to supervise and inspect the trading of both oil palm and palm oil. system From upstream, midstream and downstream to ensure fair trading prices. By preparing to appoint provincial working groups in 7 southern provinces with elements from various parties. Similar to Phaya Nagaraj's special outfit Initially, i t will be ordered to register the dumping yard and palm fruit purchasing yard of every crude palm oil extraction factory so that it can be easily verified that Selling palm oil from farmers to the dumping ground From the dumping yard to the crude palm oil (CPO) mill and from the CPO mill to the B100 refinery to be blended into biodiesel. At what point is there a distortion in the price mechanism? However, the Cabinet meeting The Economic Policy Office, chaired by the Prime Minister, saw fit to request cooperation from large oil traders in accordance with Section 7 of the Fuel Trade Act of 2000 to purchase biodiesel (B100) at the price announced by the Policy Office. and energy plans (EPPO) on the website https://www.eppo.go.th/index.php/th/petroleum/price/structure-oil-price, which the price as of June 12, 2024 is at 35.54 baht per liter, which the price is calculated from the average crude palm oil (CPO) price at the Department of Internal Trade. Ministry of Commerce published Recently, Mr. Peeraphan Saleer athaviphak, Deputy Prime Minister and Minister of Energy, agreed to go to negotiate and ask for cooperation from PTT. Bangchak and other major oil traders Bangchak is now the first to pilot such measures. In addition, it will monitor the purchase of biodiesel by large oil traders according to Section 7. It will use its powers according to Section 311 of the Securities and Exchange Act if it is found that large oil traders do not trade at the announced prices. of the publishing house So be sure that From upstream, midstream, and downstream of the oil palm chain, there will be fair prices. As for the Ministry of Agriculture and Cooperatives, which is upstream because it takes care of palm farmers, it will plan new palm oil production. By aligning demand with supply to avoid oversupply in the market causing prices to fall. Captain Thammanat spoke about the management of the palm oil chain saying that approximately 1/3 of the palm production is used to make B100. The other part is consumed domestically by prod ucing cooking oil. and exports approximately 20%. Currently, the palm oil stock is at 230,00 tons, which is still lower than the optimal stock level of 250,000 tons. Therefore, the palm oil stock is not so excessive that it causes the price of palm oil that farmers sell to fall. He saw that the selling price of agricultural oil palm fruit should be no less than 5 baht, so he had to break down the wall that created unfairness to farmers. The Ministry of Agriculture And the Ministry of Commerce must find out the facts. The real cause of the price of palm oil sold by farmers has fallen and we will work together to find measures to stabilize palm prices so that this kind of thing doesn't happen again every year. In addition, the Ministry of Agriculture It will enhance protection against smuggling of palm oil and products that are already prohibited by law. The Nagarat Special Unit along with the security department went on the ground to inspect intensively. The Office of Agricultural Economics (Agricultural Eco nomics Office), Ministry of Agriculture and Cooperatives, stated the oil palm situation in June 2024 that the price of oil palm sold by farmers has increased slightly from May. The average is 4.09 baht per kilogram, from 3.95 baht per kilogram in May. This is due to Product will be released to the market, approximately 1.649 million tons decreased from May, with oil palm producing continuous production throughout the year. The period that produces less production is The end of the year continues the beginning of the year. As a result, from January to April 2024, the price that farmers can sell is on average more than 4 baht per kilogram to 5 baht, but the period that produces the most produce is From March - June is the period when prices decrease. Oil palm situation in 2024, in which production throughout the country was found (forecast information as of March 26, 2024), the productive area was 6.381 million rai, increasing from last year when the productive area was 6.248 million rai, an increase of 132,95 9 rai or 2.13 percent. Production was 18.121 million tons, a decrease from last year's yield of 18.267, a decrease of 146,471 tons or 0.80 percent. Productivity per area of ??yield was 2,840 kilograms per rai, down from 2,924 kilograms per rai. This decreased from last year by 84 kilograms per rai or 2.87 percent. It is expected that Overall, productive areas in the South will increase as farmers plant new oil palms in 2021, which will replace rubber. Some expanded areas to plant oil palms in place of rice fields. wasteland It will begin producing production this year. The expansion of oil palm planting areas in 2021 is due to the good price of palm oil since 2021. As for the production per area of ??production for the entire country, it is expected that Decreased because from the end of 2022 until May 2023, oil palm trees were affected by hot and dry weather conditions. Insufficient rainfall Make some of the leaves fold. Immature oil palm trees The number of bunches to be collected in 2024 decreased. Betwe en November 2023 and early 2024, the El Niño phenomenon intensified. As a result, the amount of rainfall is insufficient to meet the needs of the oil palm trees, which may result in a reduction in the weight per bunch. For this year's produce, which came to market the most from March - June, it accounted for 38 percent of the total production. In May, approximately 1.694 tons of produce went to market. Farmers gathered their produce and concentrated it in front of the dumping ground. As a result, the price of oil palm fruit bunches and assorted bunches that farmers can sell in May has dropped to an average of 3.95 baht per kilogram, but at this time, which is the end of the high-productivity period, the price has increased as such. Source: Thai News Agency