Thailand to import palmoil

Thailand to import palmoil

BANGKOK (Reuter): The Thai cabinet has approved a commerce ministry proposal to license new imports of 25,000 tons of crude palmoil to ease a local shortage, ministry officials said yesterday.

They said the palmoil would be allowed into Thailand between now and March 15, through imports made by the state-run Warehouse Organization.

They did not state where the palmoil would be purchased from, but Thailand traditionally buys from neighboring Malaysia and Indonesia.

The imported crude palmoil will face a 10 percent tariff against 20 percent for those brought in outside the approved quota.

The officials said to protect domestic growers, palmoil refineries buying imported crude from the Warehouse Organization are required to buy proportionate local crude at a minimum ex- crushing mill price of 14.50 baht/kg during March/November.

Palm crushers are also asked to buy palm from growers at a price of at least 2.50 baht/kg during the same period.