Agriculture & Food

According to recent news from the Thai media, the Thai cabinet approved a project to promote palm oil exports in 2022 to reduce excess production under the condition that domestic palm oil stocks exceed 300,000 tons and palm oil prices are higher than the global market price. With a budget of 309 million baht, the project aims to boost exports, reduce excess domestic palm oil production to a balanced level, and increase the price of palm fruit, increase farmers' income and stabilize domestic palm oil prices.

The project of promoting palm oil export to reduce excess production in 2022 will be used to support the management cost of 150,000 tons of palm oil export. The export period is within September of this year. The project participants must be legal entities, including palm oil or products. Manufacturers, merchants, warehouse operators or exporters, subsidize management costs of 2 baht per kilogram, such as transportation costs, storage fees, quality improvement fees, documentation fees and other handling charges.

The export period is from the approval of the Cabinet to September 2022. When domestic palm oil stocks exceed 300,000 tons and palm oil prices are higher than the global market price, the exporter’s management fee of 300 million baht and other government expenses of 9 million baht can be used.

Thanakorn said that the above project is a mechanism to stabilize the domestic palm oil and palm oil market, during the period when the results have been put on the market in large quantities, and the domestic energy demand for palm oil has declined due to the decrease in the use of biodiesel in diesel fuel. proportional measure. In addition, the domestic crude palm oil inventory is 300,000 tons, which is equivalent to 1.5 times the domestic monthly demand and is considered to be a safe inventory level. It is believed that the project will not cause domestic shortage problem, but can prevent and alleviate the problem of oversupply of palm oil and oil palm.