Fertilizer Prices Drop 200 Baht Per Bag As Oil Costs Fall
Urea fertilizer prices have dropped 200 baht per bag following declining global oil costs, with prices now ranging from 1,200-1,300 baht as Thailand's Commerce Ministry monitors the market for stability.
Thailand's Commerce Ministry confirmed that fertilizer prices are easing after global oil costs declined due to improving Middle East tensions. Following discussions with the Thai Fertilizer and Agricultural Business Association last week, urea fertilizer prices have dropped 200 baht per bag, falling from 1,400-1,500 baht to 1,200-1,300 baht compared to crisis-period levels. The ministry is carefully monitoring fertilizer pricing to ensure sales reflect true market mechanisms and production costs, with prices and supply expected to stabilize further in coming weeks.
Plastic packaging items like bags have also seen a 5-baht-per-kilogram price reduction, dropping from 47-51 baht to 42-45 baht as product supplies normalize and costs align with reduced expenses. Consumer goods using plastic packaging—including shampoo, soap, and toothpaste—have not yet seen direct price increases despite the energy crisis. Producers and retailers are competing with continuous promotions to boost sales, benefiting consumers even without formal price reductions.
Palm oil prices remain at appropriate levels reflecting production costs. Stock from the crisis period was sold at no more than 50 baht per bottle, while new inventory remains within reasonable cost parameters. Currently, farmers are receiving 7.85 baht per kilogram for palm fruit.
