Thailand will export 800,000 tons of palm oil in 2024

Thailand plans to export 800,000 tons of crude palm oil this year in a bid to stabilize the price of locally produced fresh palm nuts, the Bangkok Post reported.

Wattanasak Sur-yam, director-general of the Department of Domestic Trade, said local prices of domestically produced fresh palm nuts have continued to rise, surpassing 5 baht (5.6 grams) per kilogram after falling sharply in April and May due to an oversupply in the market. He said the department has a plan for further exports to reduce oversupply, which should help boost palm nut prices.

Thailand exported about 400,000 tons of crude palm oil in the first half of this year and the same volume is forecast for the second half of the year. The demand for crude palm oil for domestic consumption is 110,000 tons, 120,000 tons for biodiesel production, and 800,000 to 900,000 tons for exports, with India as the main market. Thailand has 300,000 tons of crude palm oil reserves.

According to Mr. Wattanasak, crude palm oil from Thailand can compete in the global market as local and global price levels are similar: the current price of Thai crude palm oil is 33.25 baht per kg compared to 32.63 baht last month, while the world market price is 32.72 baht per kg. The depreciation of the baht should have a positive impact on the country’s crude palm oil exports, he said.

According to Mr. Wattanasak, crude palm oil from Thailand can compete in the world market as local and world price levels are similar: the current price of Thai crude palm oil is 33.25 baht per kg compared to 32.63 baht last month, while the world market price is 32.72 baht per kg. The lower baht exchange rate should have a positive impact on the country’s crude palm oil exports, he said.

The department has instructed palm nut buyers and palm oil extraction mills to refrain from unreasonable price cuts.

Under the 1999 Law on Prices of Goods and Services, violators could face up to five years in prison, a fine of 100,000 baht or both. The order said anyone who buys palm nuts below a set price could face up to seven years in prison or a fine of 140,000 baht, or both.

The order also requires operators of extraction plants to report their activities to the department on a daily basis. The data requested includes the volume of palm fruit purchases, the purchase rate and the amount of oil extracted. Failure to report on the amount of extracted oil and where it is stored faces a jail term of up to one year or a fine of 20,000 baht, or both.

The department has also ordered officials to check the procurement and accuracy of weights at palm oil warehouses and factories to prevent farmers from being exploited. Farmers have been asked to harvest only fully matured palm nuts to get a good price.

In 2024, fresh palm nut production is estimated at 18 million tons, the same as the previous year, while crude palm oil production is estimated at 3 million tons.

India’s palm oil imports rose 3% in June from May to the highest level in six months on the back of robust demand from processors.

Tags: Thailand, palm oil