Thailand Sets Guaranteed Prices for Palm Oil

Thailand’s cabinet has approved a US$1.1 billion budget to set guaranteed prices for palm oil and rice.  Of the total, USD438 million was for the 300,000 palm oil planters registered with the Agriculture and Cooperatives Ministry, the Nation Thailand reported on 27 August   

The oil price guarantee was US$0.13 of product containing 18% of oil per kg.  It was based on the market average of US$0.10 plus US$0.01 for transportation costs, allowing a US$0.03 price spread.  Registered farmers producing palm oil on 4 hectares or less were eligible.  A subcommitte would calculate the difference between the guaranteed price and the market value every 15 days, according to Thailand Business News