BANGKOK, THAILAND – Desperate palm oil farmers fought for their survival as collapsing prices and soaring costs pushed many to the brink.
Prices in free fall
Farmer representative Arunee Chisangwon raised the alarm and appealed directly to the Ministry of Commerce for help. Backed by a network of growers from central and southern Thailand, she called for immediate measures to halt the price slump. Farmers were currently receiving only 6.60 to 7.20 baht per kilogram for their fresh fruit bunches.
To counter the decline, growers proposed that more crude palm oil be diverted into energy production. By blending it into diesel fuels such as B7 and B20, the state could absorb surplus volumes from the market. Farmers argued this would ease the intense financial pressure on Thai families.
Accusations of rigged scales
A major complaint from producers concerned opaque pricing practices by middlemen and processing plants. Farmers accused buyers of cutting purchase prices very quickly while raising them again only with extreme reluctance. According to the growers, the value of their produce often dropped by 40 to 50 satang per day without any possibility to resist.
Wittyakorn Maneenet of the Department of Internal Trade pledged a strict review of the entire supply chain. Inspectors were to scrutinise collection points and factories closely to prevent price manipulation. Anyone found to be artificially downgrading oil content or exploiting farmers would face tough legal consequences.
More fuel from palm oil
The Ministry of Commerce had already responded with a plan to sharply increase palm oil use in the energy sector. Instead of the previous 70,000 tonnes, up to 110,000 tonnes would soon be channelled into fuel production. Officials said this was intended to stabilise the domestic market and reduce reliance on volatile global prices.
The network of outlets selling this special biofuel was also being rapidly expanded. By the end of April, the number of service stations offering the fuel was set to double from 100 to 200. The government aimed to ensure that palm oil produced by local farmers would end up directly in vehicle tanks.
Exports continue
Rumours of an export ban were firmly rejected by the ministry, which stressed that foreign trade would remain unobstructed. Companies would only be required to register their shipments in advance so the state could track domestic reserves. Officials noted that the world market price for crude palm oil had fallen from 40 to about 36 baht per kilogram, adding further pressure on the sector.
Despite the difficult situation, the authorities maintained that supplies for consumers remained secure. Retail prices for bottled cooking oil in supermarkets were rising only moderately, helped by stocks built up in previous months. Applications from manufacturers for sharp retail price increases had so far not been approved.
Protection for smallholders
The Ministry of Commerce insisted that safeguarding farmers’ livelihoods was its top priority. It aimed to balance producer incomes with the cost of living for consumers through tighter oversight. Provincial monitoring boards had been instructed to report any irregularities immediately.
Rising fertiliser expenses were said to be wiping out the already slim profits of family-run plantations. Without a stable minimum price, many smallholders faced the risk of financial ruin. The coming weeks would show whether state inspections and market interventions would be enough to secure the farmers’ future.