The cabinet resolutions on April 17, 2012 and May 8, 2012 approved the solution to palm oil problem by allowing an import of not-more-than 40,000 tons’ palm oil. Initially, 10,000 tons of imported palm oil was approved. The import must not affect farmers and domestic palm oil price. Moreover, palm oil refinery is allowed to set the palm oil retail price at not more than 42.00 Baht per liter-bottle. Ministry of Commerce is assigned to evaluate the situation and its impact. In case an additional import is needed, the Ministry cannot import more than 10,000 tons per time and must inform the cabinet. The import can immediately be terminated when the crisis is relieved.

Ministry of Commerce by Purchase Warehouse Organization imported 10,000 tons of Refined Bleached Deodorized Palm Oil during May 8-16, 2012 under the rate of 31.00 Baht per kilogram, and distributed to palm oil refineries for production and retail under the price of 42.00 Baht per liter-bottle without compensation and additional import since the domestic palm oil situation went back to normalcy. Currently, the number of palm oil products for sale since March – May, 2012 is lower than the number of palm oil products in every month expected by Ministry of Agriculture and Cooperatives which is 25% in average. Therefore, it is predicted that the number of palm oil products during July – August, 2012 will be not lower than 25% comparing with what Ministry of Agriculture and Cooperatives had expected. There are 3 stock levels such as safe stock at 200,000 tons, warning stock at 168,000 tons, and crisis stock at 135,000 tons. From the palm oil stock examination at the end of June, 2012, there were 158,633 tons. It is expected that; in July 2012, there will be approximately 126,353 tons, and; in August, 2012, there will be approximately 115,907 tons. From the palm oil stock examination in the whole system on July 11, 2012, there was every kind of palm oil left in the whole system or approximately 131,825 tons of crude palm oil excluding stock B100 (7,765 tons). There will be 124,000 tons of palm oil stock for consumption which is lower than the crisis level (135,000 tons).

Concerning the solution to palm oil price fixing at 42.00 Baht per liter-bottle in order to reduce people’s cost of living due to the government’s policy, the meeting launched a resolution to immediately import palm oil so as to relieve the palm oil shortage in the same manner as conducted in the beginning of 2011. In this regard, additional 30,000 tons of palm oil will be imported by August. It is expected that the stock at August, 2012 will be at 126,353 tons which is lower than crisis level at 135,000 tons. Therefore, the import will be gradually conducted at 10,000 tons in each time. In case products in the stock reach the safe level, the import will be terminated so that farmers will not be affected. An additional import can be requested if products in the stock are lower than safe level (200,000 tons). The issue will be proposed to the cabinet for further consideration and acknowledgement.

The meeting also acknowledged the progress of drafting the Royal Decree on Palm Oil in 6 steps, as follows: 1). Collecting basic information about palm oil in the whole system such as law, regulation, the Royal Decree on other agricultural products, and international palm oil law; and studying basic industrial structure in the whole system 2). Studying challenges of palm oil industry, future direction of the industry, and listening from people involving with the palm oil industry 3). Providing a draft TOR on the Royal Decree on Palm Oil 4). Proposing the TOR and organizing public hearing with people concerned 5). Proposing the TOR to the Committee on National Palm Oil Policy for acknowledgement 6). Hiring an adviser for drafting the Royal Decree on Palm Oil according to a proposal from secretary division.