Area
Thailand
Commodity Group
Oilseeds, oils and meals
Commodity
Oil palm
Date
01/08/2019
Policy Category
Production
Policy Instrument
Production support
Description
Approved a price support package to assist oil-palm growers affected by depressed farmgate prices. Under the scheme, registered oil-palm farmers would receive cash compensations when the market price for fresh palm fruit drops below a guaranteed level of THB 4 per kg (USD 132 per tonne).
Notes
In a bid to support oil palm growers affected by depressed farm gate prices, the Thai Government has approved a price support package worth THB 13.4 billion (USD 438 million). Funds will be used to provide up to a limit of 25 rai (4 hectares) per family cash compensations to registered oil palm farmers whenever the market price for fresh palm fruit falls under the governments guaranteed level of THB 4 per kg (USD 131 per tonne). The programme is expected to benefit about 300 000 growers between August 2019 and September 2020. Other measures under consideration include the enforcement of B10 (transport diesel containing 10 percent of palm-oil-based biodiesel) by end-year and additional crude palm oil procurement by the countrys Electricity Generating Authority. Reportedly, the Government also stepped up its efforts to end palm oil smuggling from neighbouring Malaysia.
