Oil palm import plan riles farmers

Oil palm import plan riles farmers

Oil palm growers are threatening to ratchet up their protest against the government's move to import palm oil.

The announcement came after the National Oil Palm Policy Committee (NOPPC), chaired by Deputy Prime Minister and Defence Minister Prawit Wongsuwon, yesterday agreed to import 50,000 tonnes of crude palm oil to ensure there are no supply shortages. 

The proposal will be forwarded to the cabinet meeting today for approval. 

The farmers have sent a representative to submit a letter to the government to oppose the imports and if the government insists on carrying on with the policy they will step up their protest.

The committee's decision has sparked concerns among growers who fear local oil palm prices will plunge following the imports.

Oil palm growers held an urgent meeting in Nakhon Si Thammarat's Muang district yesterday to discuss the government's move.

Nakhon Si Thammarat's Palm Farmers Association chairman Somporn Sripetch said the meeting agreed to oppose the imports since the full harvest figures will not be known until late this month. 

"This time, all of us will be in trouble again and I can say we will not bow down. The government must watch what happens. It may result in episode No.2 of the Kuan Nong Hong strategy," he said, referring to the severe protest and road blockades staged by rubber farmers at the Kuan Nong Nong Road intersection in Cha-uat district of Nakhon Si Thammarat in September 2013.

Mr Somporn said the government planned to import the palm oil from Indonesia at 16 baht per kilogramme, compared with a price of about 30 baht/kg fetched for locally produced palm oil.

He said the petition will be sent to Prime Minister Prayut Chan-o-cha this morning and the growers will wait for the government's reaction before making any further moves.

Gen Prayut said yesterday imports of palm oil would only be short-lived. The harvest season for oil palm has come to an end and production had been low, he said.

Falling oil prices are currently contributing to lower use of palm oil-mixed fuel, and the imported palm oil will be used more for consumption, the premier said.

The government had told importers that if stockpiles turn out to be adequate, the imports may no longer be needed.

The NOPPC decision came after the country's palm oil stocks fell to 60,000-70,000 tonnes, according to a meeting last week to address the palm oil shortage chaired by Commerce Minister Chatchai Sarikulya.

The stockpiles are lower than the "safety level" of 200,000 tonnes and the "alert level" of 170,000 tonnes, said Wiwan Boonyaprateeprat, secretary-general of the Thai Oil Palm and Palm Association, who also joined the meeting yesterday.

Ms Wiwan said the private sector and the Commerce Ministry had earlier agreed 130,000 tonnes of palm oil are needed for consumption each month. The plummeting stockpiles have been caused by output of only 580,000 tonnes in November and 400,000 tonnes in December, much lower than the monthly average of 1.2 million tonnes.

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