Thailand bans export of raw palm oil until December

Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.

The restrictions, expected to last until December, aim to stabilize local prices and ensure adequate stock levels.

Minister of Commerce Pichai Naripthaphan highlighted that current market conditions reflect a significant decrease in oil palm output, necessitating measures to protect both farmers and consumers from inflated prices.

Goranij Nonejuie, deputy director-general of the department under the Ministry of Commerce, confirmed that prices are currently sold at THB8-9 ($0.24-0.27) per kg, but emphasized the need to monitor bottled palm oil prices closely.

The ministry has coordinated discussions with the Palm Oil Extraction Mills Association and various retailers to manage stock levels and delay price adjustments for consumers.

The Palm Oil Extraction Mills Association and the Palm Oil Refinery Association have pledged to cooperate with the government's efforts. They have agreed to suspend exports and work together to stabilise prices.

Additionally, retailers and wholesalers have committed to maintaining reasonable prices for bottled palm oil and implementing promotional offers to alleviate the impact on consumers.

With a crude palm oil stock exceeding 200,000 tonnes, the associations have committed to suspending exports until the situation improves, with plans to revisit this in January 2025.

To prevent price gouging, the department has warned that violators can face up to seven years in prison or a fine of up to THB140,000 ($4,150).