Energy Minister Calls EGAT Suspend Absorb CPO.
Suspected Capitalist Seized Benefit Purchase Underprice Palm Fresh Fruits
29-5-2019—Yesterday Energy Minister Dr.Siri Chirapongphan called EGAT to suspend purchasing CPO from palm oil refinery in the second lot after it’s found that the latest price of CPO and B100 were raised up significantly but the price of oil palm fresh fruits as its law material remain unreasonable low.
Yesterday, EGAT clarified that on May 28, 2019 it was found that there are 8 crude palm oil extraction plants have passed the bidding criteria, representing the amount of crude palm oil. 26,950 tons of crude palm oil EGAT to purchase, which in made EGAT purchased in total 66,250 tons of CPO collectively, which remain under the target of 100,000 tons according to the cabinet resolution.
Energy Minister Dr.Siri said if considering in terms of the CPO price that is rising, the price of CPO should be at the level of 3-3.10 baht per Kg, but now the average price of crude palm oil is only 2.50-2.70 baht/Kg is still lower than the target placed by the state.
Therefore, the Ministry of Commerce and the farmer sector have to find the answer to the real reason why the purchase of crude palm oil is another 100,000 tons. to complete 200,000 tons according to the cabinet resolution.
Currently Minister of Energy found that the CPO price in the market has now risen to 17.25 baht per kilogram, which is higher than the price EGAT purchased at 16.50 baht per Kg. The website of Office of Agricultural Economics reports the CPO average price of crude palm oil this week is 18.88 baht per Kg, down 0.63% from the price of 19.00 baht per Kg last week. while B 100 is also risen up but the price of fresh palm fruit still does not reach the target of 3-3.10 baht per kilogram as targeted while it should be.
“It is also a matter of policy to decide the buying framework, whether to proceed to have EGAT absorbing CPO from the market in the next phase or not.Still have to wait to evaluate the palm price situation in the market again.” said Energy Minister.
Refer to Manager Online news reported that Mr. Chayodom Suwattana, the chairman of the oil palm plantation group of Thailand, said “today, May 30, farmers representatives will submit a letter to the Ministry of Commerce to call for a fair examination for farmers planting oil palm that the capitalists seize the opportunity to push down the price of fresh palm.”
“Because now it is found the CPO price is 17 baht per liter while the price of B 100 is at 21.43 baht per liter, which is inconsistent with the price of the fruit bunch at the moment which remain low. If it reflecting the price of CPO and B100, the actual price of palm bunches should be at the level of 3-3.50 baht per Kg but now the average price of CPO remain just only 2.50-2.70 baht per Kg.”said Mr. Chayodom
