Appoint ‘Attawich’ as Chairman of the Committee for Drafting the Palm Oil Promotion Act.

Bangkok: Pirapan Salirathavibhaga, Deputy Prime Minister and Minister of Energy, has appointed Attawich Suwannaphakdi as the chairman of a newly formed committee tasked with drafting the Palm Oil Promotion Act. This initiative aims to accelerate support for palm oil farmers and producers, ensuring fair compensation and benefits as Thailand prepares to phase out biodiesel subsidies provided by the Oil Fund in 2026. The Ministry anticipates tangible results from the drafting process within 5-6 months. According to Thai News Agency, Mr. Pirapan highlighted the need to address the impending impact on oil palm farmers due to the cessation of subsidies. The Ministry of Energy, in collaboration with the Ministry of Industry, led by Minister Ekkanat Promphan, is seeking solutions to stabilize and support the palm oil sector. As part of these efforts, the newly appointed committee under Mr. Attawich will focus on formulating legislation to support the economic well-being of palm oil producers. Mr. Pirapan emphasized the economic significance of palm oil, which has historically been a cost-effective alternative to gasoline, particularly during periods of high fuel prices. However, with the current palm oil price reaching approximately 41-42 baht per liter, nearly double that of gasoline, the financial burden on Thailand's Oil Fund has increased. This situation has prompted the government to explore legislative measures to safeguard the interests of palm oil farmers, who are currently facing challenges related to profit-sharing with extraction plants. The current domestic palm oil production landscape sees one-third of its yield blended with diesel for local consumption, while the remaining two-thirds contribute to the production of vegetable oil and other products, with about 20% being exported. The upcoming Palm Oil Promotion Act is anticipated to emulate the framework of the Sugarcane and Sugar Act, which was designed to allocate benefits more equitably among sugarcane farmers and processors. Mr. Pirapan expressed his hopes that the new legislation will ensure equitable benefit distribution among palm oil producers and farmers, thereby enhancing the overall value chain. Furthermore, this legislative initiative aims to encourage the development and utilization of palm oil products, ensuring that all stakeholders receive fair benefits. The Ministry of Industry's previous enactment of the Sugarcane and Sugar Act serves as a precedent for this new legislative effort, providing a model for addressing similar challenges faced by oil palm farmers. The government remains committed to fostering a fair and sustainable economic environment for Thailand's agricultural sector.