The Internal Trade Department has called on some manufacturers to lower the retail price of their goods as the strengthened baht has reduced their import costs.

Copper, steel, construction materials and aluminium were some of the products cired as having reduced production costs.

Despite being able to make their goods more cheaply, manufacturers have not reduced retail prices as they have been seeking to maximise profits from rising market demand.

However, the price of some products, such as fertiliser and plastic bags, has fallen as a result of reduced import costs. The retail price of fertiliser fell by Bt20-30 per 50-kilogram bag from a previous price of Bt545, while plastic bags are selling at Bt1-3 less than their usual price of Bt72 per kilogram.

Internal Trade Department director general Siripol Yodmuangcharoen said yesterday that manufacturers whose products rely on imported raw materials have reduced their retail prices in accordance with orders from the Commerce Ministry. However, some producers appear to have ignored the instructions.

Siripol said the department will closely monitor the retail prices of all products named by the ministry to ensure that consumers are getting a fair deal.

"If these manufacturers have not brought down their prices, they will have to explain their production costs to the ministry. The measure [has been undertaken] to ensure fair practice," he said.

The department has also said it will not consider any request for price increases while production costs are falling.

Siripol said the department will also be closely monitoring the price of construction materials such as cement, corrugated iron and electrical wire, which have been put on a special watch list. The measure has been undertaken to prevent unfair price rises in response to higher demand as people repair properties that were damaged in the rainy season.

"People who suffered from the flooding have to reconstruct their houses, so the ministry has to make sure that they are charged fair prices," he said.

So far, 200 products are on the department's watch list and seven products are on its special watch list. Prices of products on the special watch are monitored every 2-3 days, with benzene and diesel oil, powdered milk, fresh milk, electrical wire, cement, and corrugated iron named as the items that will be most watched. 

The ministry has withdrawn rubber tyres from its priority watch list, which is used for products that are monitored once every two weeks. The product was exempted because there is strong competition in the market and the rubber price is stable. Sugar, fertiliser, animal feed, steel rod, steel sheet and steel for construction remain on the priority list.

Products on the ministry's standard watch list including rice, detergent, soap, shampoo, body lotion, toothpaste, seasoning sauces, plastic bags, telephone cards, school uniforms and gold ornaments.

Petchanet Pratruangkrai

The Nation