Bangkok: The Ministry of Commerce is taking decisive action to manage palm oil purchases and will convene a meeting next week to address the ongoing price fluctuations. The Department of Internal Trade is set to organize a subcommittee meeting on palm oil balance management to closely observe the situation concerning both quantity and price. Provincial commerce offices in palm-growing regions have been tasked with inspecting collection points and processing plants to ensure that purchasing practices remain standard and equitable.
According to Thai News Agency, Mr. Wittayakorn Maneenet, the Director-General of the Department of Internal Trade, emphasized that the upcoming subcommittee meeting aims to closely monitor the palm oil market, which is experiencing a consistent price increase. This trend is attributed to a temporary reduction in supply during the Songkran festival, as some collection centers and processing plants were closed. Consequently, the reduced market supply has been met with high demand, particularly from the energy sector, which has further propelled the upward price trend.
Additionally, domestic demand for palm oil is on the rise, driven by the B7 and B20 diesel fuel policies. This has led to an increase in crude palm oil (CPO) consumption from approximately 71,600 tons per month to around 140,000 tons per month. This increase has effectively absorbed the surplus supply, significantly influencing current price levels.
As of April 10, 2026, the price of oil palm fruit ranged from 7.00 to 7.90 baht per kilogram, with an average of 7.45 baht, a substantial increase from last year's average of 5.95 baht. The price of crude palm oil has also risen, averaging 40.75 baht per kilogram, up from the previous year's average of 35.38 baht. This reflects sustained market demand and provides farmers with favorable selling conditions.
Following the Songkran holiday, Mr. Wittayakorn instructed provincial commerce offices to promptly inspect collection centers and extraction plants to ensure fair purchasing operations. Stringent measures are in place to prevent price manipulation and protect farmers from exploitation, with legal action to be taken against any infringements.
The Department of Internal Trade will hold a meeting of the Sub-Committee on Palm Oil Balance Management with representatives of palm oil farmers to continuously monitor the market situation and devise suitable measures. The expectation is that due to robust demand and effective management, palm oil prices will remain strong.
Concurrently, measures to regulate crude palm oil exports are being implemented. A pre-authorization system is in place to prioritize domestic supply before allowing exports, aiming to balance overall usage. These regulatory measures, from purchasing oversight to supply and demand management, are designed to maintain appropriate palm oil prices and ensure stable income for farmers.