The government remains bullish on the price prospects of domestic fresh palm nuts, although local production and demand and global palm oil prices remain highly volatile.
Udom Srisomsong, deputy director-general of the Internal Trade Department, said the price of fresh palm nuts should keep rising if Thailand can increase exports of crude palm oil, while the government promotes and supports the use of biodiesel, helping absorb domestic crude palm oil supply.
The local price of domestic fresh palm nuts plunged to 5.50 baht per kilogramme from an average of 7-9 baht in the same month a year earlier, due in part to the shutdown of oil refineries for annual maintenance.
Most local palm oil refineries were shut down for maintenance for 15 days to one month between Dec 25 and Jan 2, resulting in farmers' inability to sell their output and the price slump of fresh palm nuts.
The prices are now quoted at 4.40-5 baht per kg.
Mr Udom said the prices of local fresh palm nuts are expected to recover after almost all refineries resumed operations and purchases from farmers while asking farmers to delay their harvest and cut only palm nuts which are fully ripened to fetch good prices.
According to the Office of Agricultural Economics, palm plantation areas covered 6.15 million rai in 2022, up from 6.03 million rai in 2021, with fresh palm nut production amounting to a record 18.41 million tonnes, up from 16.9 million the year before.
Fresh palm nut production is estimated at 18.9 million tonnes this year, said Mr Udom.
Regarding mounting concerns about palm oil smuggling, he said the department has already dispatched special task forces to inspect and keep a close watch on key production locations and cooperated with related agencies to help thwart all types of smuggling to prevent any impact on domestic palm oil prices.