February 1, 2008

Thailand's soy oil prices rise to historic high

Effective Tuesday, the new retail price of soy oil in Thailand will be at THB49.5 (US$1.57), a record high from December's price of THB45.5 (US$1.44).

Thailand's Ministry of Commerce announced Wednesday a new increase for soy oil of THB4 (US$0.13) per bottle. The latest increase was the second since December last year, making the total increase average at THB9 per bottle (US$0.29).

Vatcharee Vimooktayon, deputy director-general of the Internal Trade Department, said the increase was in line with soy seed price increases, which rose from THB10 (US$0.32) per kilogramme this month to THB19.5 (US$0.62).

Manufacturers had previously asked the ministry to raise the price by THB8.50 (US$0.27) per bottle, for the retail price to go as high as to THB54 (US$1.71) per bottle.

Vimooktayon said that there were fears that consumers would have to shoulder the price hikes requested by manufacturers if the department agreed to it. She added that the department will limit price increases for cooking oil for a while now.

The ministry also allowed manufacturers to raise palm oil retail prices twice within January, by THB4 (US$0.13) each time.

Reportedly, some brands of cooking oil disappeared from shelves as suppliers anticipate price-increase approval from the department.