Palm nut price set at 4 baht a kilo

Palm nut price set at 4 baht a kilo

25-rai limit also set for each household

Planters can expect to sell palm nuts at four baht a kilogramme soon. (Photo by Assawin Pakkawan)
Planters can expect to sell palm nuts at four baht a kilogramme soon. (Photo by Assawin Pakkawan)

The National Oil Palm Policy Committee has agreed to set the palm nut guaranteed price at four baht a kilogramme, double the current market price of the crop.

The committee, chaired by Deputy Prime Minister Gen Prawit Wongsuwon, also on Monday set 25 rai of output as the limit each household can expect to get at that price.

The proposal will be tabled for cabinet approval on Tuesday or next week.

Commerce Minister Jurin Laksanawisit, who is also a deputy prime minister, said the government expected 300,000 farmers to participate in the project.

To be eligible, planters are required to register with the Department of Agriculture Extension and the money will be deposited directly into their Bank for Agriculture and Agricultural Cooperatives accounts.

To shore up the prices, certain measures will be carried out.

The Electricity Generating Authority of Thailand (Egat) will speed up buying 130,000 tonnes of palm oil to generate electricity.

Egat was instructed by the committee in May to purchase 160,000 tonnes of crude palm oil for use as fuel to generate electricity. It was later told to buy another 200,000 tonnes but as of June 24, it bought only 70,000 tonnes.

In addition, an existing regulation requiring all vehicles to use biodiesel 10 will be enforced this year.

Security forces were also asked to step up efforts to prevent palm oil smuggling from Malaysia to keep the lid on local supply. Companies seeking permission to import and export palm oil will also be monitored closely to prevent price dumping.

Meters will also be installed at palm oil storage locations nationwide so the committee has up-to-date, verifiable information that helps with its decision-making in the future.

Mr Jurin earlier said the National Rice Policy Committee had agreed to set the guarantee prices at 10,000 to 14,000 baht a tonne for five types of paddy. 

A price guarantee programme, first introduced during the Abhisit Vejjajiva government (2008-11), has long been championed by the Democrat Party. It was also believed to be one of the conditions the party set for joining the coalition.

Under the programme, farmers will get paid only the differences when the prices fall below the benchmark prices.

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