Pukkamon Blasts Supattharaphan's Palm Oil Export Ban, Causing Price Collapse
Thailand's palm oil prices plummeted after a government export ban in early April, with an MP blaming Deputy PM Supattharaphan's order for causing oversupply at refineries and undermining farmer incomes despite weak domestic B20 fuel demand
On April 29, Pukkamon Noonannan, a list MP from the Pheu Thai Party, raised concerns about falling palm oil prices during parliamentary discussion. Palm oil, globally demanded for biodiesel blending, has dropped from 8.24 baht per kilogram to 6.25 baht, despite prices steadily climbing from 6.14 baht in January to 8.24 baht in April, indicating abnormal market disruption.
The price collapse stems from Deputy Prime Minister and Commerce Minister Supattharaphan Sutthamphan's April 5 order banning palm oil exports effective April 7, except with special permission.
"Thailand previously exported 110,000 tons of palm oil monthly while producing 300,000-400,000 tons monthly—enough for domestic consumption and exports. Closing export doors when global demand exists has caused palm oil to stockpile at refineries, allowing capitalists to suppress prices," Pukkamon stated.
When farmers appealed to the Commerce Ministry for relief, authorities granted export permission, prompting questions about why the ban was imposed in the first place, creating unnecessary panic.
Pukkamon further noted that according to the Department of Energy Business on April 23, only 105 of Thailand's 26,000 gas stations offer B20 fuel—less than 1%. This indicates B20 demand hasn't materialized, yet the government rushed to restrict palm oil exports, crashing prices. She criticized this as prioritizing public relations over market mechanisms, with farmers bearing the consequences.
