Bangkok: Palm oil farmers stormed the Commerce Ministry, urging them to lift export restrictions and promote B10 biodiesel to stabilize prices after they plummeted below production costs.

According to Thai News Agency, Mr. Manas Phuttarat, President of the Thai Palm Oil Growers Federation, led representatives in submitting a letter to Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan. They urged a review of export control measures following a sharp drop in palm oil prices at the farm gate from 8.90 baht to just 6.50 baht per kilogram, significantly lower than the average production cost of 7-8 baht per kilogram due to soaring fertilizer and labor costs. The Federation argues that export restrictions are creating a market surplus and opening the door to daily price manipulation. They also proposed that the government urgently implement B10 as the standard diesel fuel, replacing B20, to effectively absorb surplus production and channel it into the energy sector.

Mr. Witiyakorn Maneenet, Director-General of the Department of Internal Trade, explained that the price drop was a result of the volatility of crude palm oil (CPO) prices in the global market, particularly the decrease in the reference price from Malaysia, as well as exchange rate factors. He confirmed that the measure requiring advance export permits was merely for monitoring information to maintain domestic balance and was not intended to restrict trade. He added that exports have been permitted as normal for all businesses. However, the department acknowledges farmers' concerns and will expedite the investigation into the transparency of palm oil processing plants to prevent unfair price gouging.

For short-term and long-term solutions, the government is preparing to promote the use of B20 biodiesel more actively, aiming to expand the number of gas stations to 200 by the end of April to attract demand from the transportation and agricultural sectors. The Department of Internal Trade estimates that palm oil production this year is likely to decrease due to erratic weather conditions; therefore, prices should not fall excessively. Any instances of market distortion or excessive price manipulation will be dealt with decisively according to the law, in order to reform the pricing structure to reflect true quality and cost throughout the supply chain.