Palm oil prices can increase up to 5.50 Baht

The Department of Internal Trade (DTI) under the Ministry of Commerce announces that it has approved an increase of palm oil prices of not exceeding 5.50 Baht per bottle this year.

DTI Director-General Yanyong Puangrach says the palm oil prices will be raised two times by 3 Baht and 2.50 Baht respectively. The department will hold a meeting this Friday to discuss when to lever the prices. The meeting will be attended by vegetable and soybean oil entrepreneurs across the country.

Mr Yanyong says further that the department is considering a request for price increases by canned fish entrepreneurs due to a higher cost of production.

Meanwhile, crude palm oil futures traded on the Malaysian Derivatives Exchange was lower in early trading yesterday, in line with retreating world oil prices. The increase of Thai palm oil prices is for many a mystery.

Soybean oil is a key substitute for palm oil. Prices of the two vegetable oils have been benefiting from high crude oil prices, as they can be blended with fossil fuel to make bio-diesel.