Bangkok: The Department of Internal Trade is advancing its initiatives to manage the cost of living and commodity prices in response to the Middle East crisis. These measures are structured around the "2 P" concept, which emphasizes ensuring a sufficient supply of goods and maintaining reasonable prices. This strategy also involves expanding the Blue Flag project and enhancing price control to stabilize the market system.
According to Thai News Agency, Mr. Witiyakorn Maneenet, Director-General of the Department of Internal Trade, stated that the ongoing conflict in the Middle East has led to increased energy costs, which are impacting commodity prices and the overall cost of living. This includes agricultural products tied to processing and export. With transportation restrictions escalating, some exports have faced delays, and production slowdowns have resulted in increased domestic supply and price volatility. As a response, the Department is implementing a strategy to cut expenses and manage market mechanisms effectively. This plan includes continuing the "Thai Helps Thai" project and rapidly expanding the Blue Flag project to reduce living costs nationwide.
The Blue Flag initiative aims to expand from 62 events to 518 between April and August. This includes 12 large-scale events, 76 medium-sized events, 380 mini-Blue Flag events at the provincial level, and 50 events in all 50 districts of Bangkok. Over 5,000 mobile vendors, including trucks and Blue Flag mobile units, will distribute products to remote areas. Additionally, the 'Blue Flag Back to School Discount' project will be rolled out in 1,000 remote schools, offering school uniforms, stationery, and learning materials at reduced prices. The Department will also connect agricultural products to 1,000 fresh markets, central markets, gas stations, and post offices to facilitate distribution. Special-priced products will be available through 150 retail, wholesale, and small grocery stores.
In terms of price regulation, the Department has increased the number of items requiring permission for price adjustments from 7 to 15, based on actual costs and public impact. Currently, diesel is priced at approximately 48.40 baht per liter, which may cause price increases of 0.7-44.4% depending on product structure. The agricultural inputs category is most affected, with some businesses already seeking price increases in the food and beverage sector. However, the Department has not yet approved these requests and is carefully reviewing them, urging businesses to adjust prices gradually.
Regarding chemical fertilizers, Thailand's stock is approximately 64% unaffected by the crisis as these are imported from other sources. However, the cost of urea fertilizer, which comprises 36%, has risen from US$500 to US$800 per ton. Presently, there is a stock of about 343,000 tons of urea fertilizer out of a total of 900,000 tons, with plans to import an additional 234,650 tons. The government is promoting the use of blended fertilizers to reduce reliance on pure urea. The 'Green Flag Fertilizer' project is increasing discounts and providing benefits for holders of the Good Soil Card and organic fertilizer coupons. Inspections have been conducted at 1,065 fertilizer retail outlets, with 48 found in violation for not displaying prices and overcharging.
For palm oil, the Department confirms that exports have not been banned but are being managed to maintain balance. This includes increasing its use in the energy sector to 140,000 tons per month, with export volumes at approximately 43,600 tons per month. Currently, the average price of palm fruit is 8 baht per kilogram, the highest in four years. The price of crude palm oil is 41.75 baht per kilogram, and bottled palm oil is priced between 42-50 baht per bottle, which is controllable. Palm oil centers and processing plants must display purchase prices and avoid unfair practices.
Additionally, the Department has included "plastic pellets" in the list of controlled goods, covering PE, PP, and PET, essential raw materials for packaging. A special task force has been created to monitor the system, prevent hoarding, and maintain price stability.
Mr. Witayakorn emphasized that the Department of Internal Trade will continue to monitor the situation closely and is prepared to adjust measures as necessary to ensure a sufficient supply of goods and reasonable prices, safeguarding the cost of living for the public.