Bangkok: Imports of coconuts for cooking have decreased after requests were made for businesses to use domestically produced coconuts first.

According to Thai News Agency, the Commerce Ministry has reported a continuous decline in cooking coconut imports following a request for businesses to prioritize domestic production. Major businesses are preparing to further reduce imports.

Ms. Arada Fuangthong, Director-General of the Department of International Trade, revealed that an oversupply of coconuts for cooking has led to price reductions in the market. In response, the Ministry of Commerce is implementing measures to manage both imports and distribution of the surplus. This includes coordinating with coconut milk factories, coconut processing plants, cold-pressed coconut oil factories, and major importers. The Department has requested that businesses prioritize the use of domestically produced coconuts and temporarily halt imports during periods of high domestic supply.

Ms. Arada stated that, based on past cooperation, coconut imports have already decreased by approximately 60 percent. With further implementation of the plan, imports are expected to decrease by about 92 percent, reducing to approximately 20 containers per week from an average of 250 containers. This aims to boost the use of domestic raw materials, absorb excess supply, reduce price pressure, and stabilize the Thai coconut market.

Mr. Jirawut Suwannach, Deputy Director-General of the Department of Internal Trade, explained that the Department is working with provincial commerce offices and related agencies to strictly monitor the coconut purchasing situation to ensure fair trading practices and prevent price manipulation that could harm farmers.

Provincial commerce offices in key production areas have been instructed to monitor the purchasing practices of coconut milk factories, coconut processing plants, cold-pressed coconut oil factories, produce collectors, and importers. They are required to report information on purchase prices, purchase volumes, raw material stocks, production volumes, and factors determining purchase prices to assess the appropriateness of purchase prices in line with market conditions and farmers' incomes.

If any instances of farmer exploitation or unfair pricing are discovered, the Department of Internal Trade will promptly investigate and take strict action within its authority.

Previously, the Ministry of Commerce instructed provincial commerce offices in four coconut-growing provinces-Chumphon, Surat Thani, Nakhon Si Thammarat, and Prachuap Khiri Khan-to expedite coordination with coconut processing plants, cold-pressed coconut oil factories, and wholesalers to increase direct purchases from farmers. The target was to purchase approximately 9 million coconuts in total, while monitoring the production situation, purchase volume, and purchase prices daily.

For purchases in each area, the Chumphon Provincial Commerce Office has coordinated with factories to purchase at least 200,000 fruits until July. Meanwhile, the Surat Thani Provincial Commerce Office has coordinated with five coconut packing houses to purchase a total of 38,000 fruits per day, or approximately 1.14 million fruits per month, while also facilitating the export of an additional 300,000 fruits. The Prachuap Khiri Khan Provincial Commerce Office has coordinated with factories to increase coconut purchases to 84,500 fruits per day and to purchase an additional 195,000 fruits of white coconut meat per day. The Nakhon Si Thammarat Provincial Commerce Office has coordinated with its network of packing houses in Sichon, Tha Sala, and Khanom districts to purchase and deliver over 320,000 fruits and continues to purchase more.

Mr. Jirawut said that next week, the Department of Internal Trade, along with relevant agencies, will conduct field visits in Prachuap Khiri Khan and Chumphon provinces to monitor the purchasing process according to plan, gather information from all sectors, and determine concrete solutions to the problems. He confirmed that the situation regarding imports, purchasing, and purchase prices will be continuously monitored to ensure that coconut production is distributed according to plan and that farmers receive fair treatment.