Thailand retailers began the rationing of bottled palm oil to control seasonal narrowness. Big C on by pass road limited the sale of two bottles cooking oil per person, while The Nation reported Tesco Lotus limited the sale of one bottle of palm oil per customer. Phuket Internal Trade Office researcher Mr. Pramarn Urawan told this nationwide problem might be panic buying following the news of shortcoming possible and increasing price next year.
“Industries that depend heavily on palm oil usage may resort to stocking up to ensure that possible shortages will not affect their operations. Excessive panic buying then eventually leads to actual shortages, especially during this time of year when supply is already lagging,” Mr Pramarn said. The price of raw palm oil rose from 3 baht to 7.50 baht per kilogram. The costs of production have been rose including the expense of shipments stated Tesco Lotus. Tesco reports government controlled its selling price for 38 baht per bottle while it is losing money since the production costs 50 baht per bottle.
Furthermore, Mr. Pramarn said the palm oil ration must not have significant effect to the Phuket businesses. “Most consumers in Phuket use palm oil for cooking in households and restaurants. Although palm oil is one of the cheapest cooking oils on the market, there are substitutes readily available, such as soy oil and corn oil that can be bought for around 46 baht a bottle,” Mr Pramarn said. Internal Trade Department asked the suppliers to distribute the stock of over two million bottles palm oil to decrease the current shortcoming. It is not expected to last until February as they expected the peak of increasing palm oil production by then.
News by Phuket Gazette