News Forum - Commerce Ministry investigates oil palm price drop

[Thaiger]

The Commerce Ministry directed the Internal Trade Department to investigate the recent drop in oil palm prices by visiting provinces known for palm plantations. This initiative follows complaints from growers about reduced purchase prices. Commerce Minister Phumtham Wechayachai instructed Wattanasak Sur-iam, director-general of the Internal Trade Department, to assess the situation in Phang-Nga, Krabi, and … …

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[Ramanathan.P]

The price is controlled by the intermediary...which is the oil mills. The planter cannot keep the fruits for more than few days and are forced to sell for lower price. Unless there is a price cap set by the governing body, nothing can be changed. The palm oil mills can always pull the plug as for them it is 100% net profit. They cover all their overheads and expenses with the oil extract from the fruits with  a good profit margin and the nut is their net savings.