The Committee for Vegetable Oil has instructed state agencies to solve a coconut shortage in a sustainable way, by increasing planting nationwide instead of importing from abroad.
The committee, chaired by Deputy Prime Minister Prajin Juntong acknowledged that coconut production has declined steadily over the past five years because of drought and destructive pests.
The area used for growing coconuts nationwide fell to 1.1 million rai last year from 1.3 million in 2012.
A pest known as the coconut black-headed caterpillar has been blamed for lowering Thailand's coconut productivity to 632 kilogrammes a rai on average, compared with 806kg in 2012.
Yesterday, ACM Prajin ordered the establishment of a working committee with action plans, aimed at boosting production to the level Thailand used to enjoy five years ago.
Authorities say Thailand's coconut production used to be about 800,000 tonnes but the volume fell to about 740,000 tonnes last year.
The shortage resulted in the import of more than 140,000 tonnes of coconut.
In order to increase productivity, the action plans should focus on increasing plantation areas.
The working committee is also expected find better coconut varieties for future production through research and development.
Imports on coconuts must be scrutinised, as many of them were brought in illegally to avoid taxes.
The working committee is scheduled to hand ACM Prajin the action plans at the next meeting in March.
The crop shortage led to heavy imports over the past five years, from only 27,000 tonnes in 2012 to 140,000 tonnes last year.
Most imported coconuts are from Indonesia, the Philippines, Vietnam and Myanmar.
Domestic demand for coconuts has increased along with growth in the Thai food industry, as coconut milk is a key ingredient of many Thai dishes.
While domestic supply is short, Thailand continues to export canned coconut milk.
The Agriculture and Agricultural Co-operatives reported that Thailand exported about 180,000 tonnes of coconut milk last year, up from 110,000 tonnes in 2012.