September 27, 2010

Thailand seeks pork price cut

To address the impact of rising consumer good prices in Thailand, the Commerce Ministry has asked pork vendors to cut retail prices by THB5-THB10 (US$0.16-$0.33) per kg beginning October.

Meanwhile, chemical fertiliser and pesticide manufacturers have already complied with the government's request to reduce selling prices.

Internal Trade Department Director General Vatcharee Vimuktayon said her department has sought cooperation from the Eviscerated Pork Traders Association, the Thai Fresh Market Association and independent pork traders to lower the retail pork price to THB105-THB110 (US$3.43-$3.6) per kg from October 1 to relieve the burden on consumers.

The price cut was considered after the production cost of pork has gradually declined from THB61-THB62 (US$1.99-$2.03) per kg to between THB55 (US$1.8) and THB56 (US$1.83) baht per kg.

Vendors found guilty of overcharging pork prices will be liable to seven years in jail or a fine of up to THB140,000 baht (US$4,578.16) or both.

Besides the price cut campaign, the Internal Trade Department chief said Blue Flag pork sale with price set at THB100 baht (US$3.27) per kg will be made available at Blue shops across the country.

Vatcharee further said that 15 manufacturers of chemical fertiliser and pesticide, who have benefited from the stronger baht, have already responded to the Commerce Ministry's request to reduce selling prices following the lower production cost from October 1 to the end of this year.

The suggested wholesale prices at factory for fertiliser will be cut to THB14,000-THB16,000 baht (US$457.82-$523.22) per tonne.

Any violation of the price control will be subject to a maximum penalty of a seven-year imprisonment or a THB140,000 (US$4,578.16) fine or both.

She added officials of the Internal Trade Department will be sent out to advise the public of the new prices and to ensure products are being sold at the fixed prices.