Govt to tackle falling palm oil prices

BANGKOK, May 10 (TNA) - The government gears up to tackle falling palm oil price as oil traders are ready to sell B20 palm-based biodiesel for trucks in August. The price of oil palm fresh fruit bunches from growers increases to about 3.30-3.40 baht per kilogramme at the end of the growing season. However, crude palm oil (CPO) price has dropped to 18.50 baht per kilogramme, lower than the price of 19 baht per kilogramme, announced on Tuesday by the central committee on goods and service prices. The falling CPO price is caused by surplus of crude palm oil stocks and the global market price. The Office of Agricultural Economics expects production of 2.7 million tonnes of crude palm oil from 15 million tonnes of palm fruit this year. About 2.4 million tonnes of CPO will be used for consumption, biodiesel production and in the industry. As a result, the rest of the CPO, together with the CPO in stock is estimated at about 600,000 tonnes. Commerce Minister Sonthirat Sonthijirawong said the national committee on palm oil policy, chaired by Deputy Prime Minister Gen Prawit Wongsuwan will meet on Friday to consider five measures to solve the problem such as palm oil export promotion. One of the five measures is to order the palm oil extracting factory to buy palm fruit with 18 per cent of oil to prevent selling of young oil palms to the factory. Another measure is to fix import of palm oil along the border to less than 40,000 tonnes per year. The Energy Ministry will also promote the use of palm –based biodiesel B20 for trucks to absorb palm oil surplus of 250,000 tonnes per year. (TNA)