September 13, 2013

Thailand freezes egg prices for three weeks

In order to help ease soaring costs of living, Thailand's Commerce Ministry has frozen egg prices, set by egg producers, at THB3.5 (US$0.11) each for three weeks.

The price cap will see the retail price of hens' eggs pegged at between THB3.9 (US$0.12) and THB4 (US$0.13) each against prices which had surged to THB5 (US$0.16) for the largest size (Size 0) and over THB4 (US$0.13) for smaller sizes.

The move came as around 300 protesters rallied in front of the ministry demanding it stop the rise in consumer product prices following the government's hike in cooking gas prices on September 1.

After a meeting between Deputy Commerce Minister Yanyong Phuangrach and major egg producers, the announcement of the immediate egg price cap was made.

Yanyong said that three weeks should be enough to counter the price surge in eggs, which has been caused by a supply shortage. Things should have returned to normal by then.

Under the government's nationwide Blue Flag campaign for low consumer goods prices, the ministry will work out with egg producers to offer a discounted price for a pack of 30 eggs at THB99 (US$3.11). The discount, which will apply to about two million eggs sold daily, will make them THB20 (US$0.63) cheaper than usual.

Egg producers in Phichit say unusual weather has caused hens there to produce fewer eggs which have forced them to set egg quotas for retailers while consumers and food sellers at Phichit municipality market have begun to hoard eggs, following rumours of a looming egg shortage.

Internal Trade Department director-general, Wiboonlasana Ruamraksa, who spoke with the protesters, said the ministry is doing its best to solve the price problems.