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Jurin promises relief for palm-oil growers

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Jurin promises relief for palm-oil growers

By The Nation

 

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Deputy Prime Minister and Commerce Minister Jurin Luxanavisit told palm-oil farmers in Surat Thani on Friday he would propose to the Cabinet on August 27 a price guarantee of Bt4 per kilogram for 18 per cent of the oil they produce.

 

 

“We also will propose measures to boost market prices over the long term, as well as the guaranteed price,” he said.

 

Jurin said the measures would include having the Electricity Generating Authority of Thailand use 130,000 tonnes of palm oil to produce energy, managing palm oil stocks with a metering system, exporting oil to China and India, and tighter restrictions on smuggling.

 

Source: https://www.nationthailand.com/business/30375272

 

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-- © Copyright The Nation Thailand 2019-08-24

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Another price guarantee on a agricultural product that is having problems due to a drop in world prices caused by the large amount of product on the market.

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 It is clear that if the very reason 

55 minutes ago, rooster59 said:

Electricity Generating Authority of Thailand use 130,000 tonnes of palm oil to produce energy

using biofuels is to reduce global emissions , then any biofuel that increases them by any amount should not be supported.

A complicated issue that requires no fast track solution as proposed by khun Jurin.

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Posted (edited)
5 hours ago, rooster59 said:

“We also will propose measures to boost market prices over the long term

The problem with palm oil prices I think began in 2015.

The government's National Palm Oil Policy Committee chaired by DPM Prawit decided to import 50,000 tons of raw palm oil under a budget of 1.5 billion baht to ease an expected shortage. At the same time, the committee would coordinate with the Energy Ministry in lowering the mixture of biodiesel from B7 to B3 to help solve the effects of having limited raw palms to meet demand due to low output as the result of drought since last year. http://englishnews.thaipbs.or.th/thailand-import-50000-tons-raw-palm-oil-ease-expected-shortage

 

Then a month later the Ministry of Commerce's subcommittee on the management of oil palm and palm oil asserted that no further importation of palm oil is needed to feed domestic demand.

 

By the next month (2015-04-10) there was a plunge in the price of palm oil (the average price of fresh palm nuts has dropped to Bt3.60-Bt3.90 per kg, while the cost of palm-fruit production is Bt3.38 per kg). While the Commerce Ministry insisted not intervening in the market price, the Agriculture Ministry and EGAT and Commerce Ministry agreed to: 

http://www.nationmultimedia.com/business/No-intervention-to-curb-price-slide-of-palm-oil-Ch-30257759.html

  • help purchase palm nuts directly from small farmers having less than 50 rai of land, at market price and above the cost of production.
  • ask fertiliser traders to reduce their prices by 5-10 per cent to help farmers for six months,
  • palm oil for biodiesel production will be raised from B3 to B7.
  • have Egat increase palm oil for its electricity production from 3,000 tonnes to 12,000 tonnes per month.

Following month the Commerce Ministry proposes

  • buying palm oil with 17% oil content at 4.2 Bt/Kg to be sold to refineries and middlemen. A 2.6 billion baht fund was allocated to allow the Public Warehouse Organisation (under the NPOPC) to implement the oil palm price stabilization scheme by buying 100,000 tonnes of raw palm oil from palm oil extraction factories set at 26.20 Bt/Kg and stockpiled.

Two months later (July 2015) the Ministry of Commerce decided to continue its intervention scheme to prop up palm oil prices, despite a recent oversupply.
Another two months later the Ministry lowered its price support to 3.20Bt/Kg.

 

So what we have today is the accumulation of unsustainable palm oil policy decisions beginning in 2015 to be perpetuated by a "recycled" 2019 Prayut government with the same or similar policies.

Edited by Srikcir
typo
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8 hours ago, rooster59 said:

Deputy Prime Minister and Commerce Minister Jurin Luxanavisit told palm-oil farmers in Surat Thani on Friday he would propose to the Cabinet on August 27 a price guarantee of Bt4 per kilogram for 18 per cent of the oil they produce.

Rubber, rice now palm oil... all being subsidised by the government... markets dictate the price  !!

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