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Fri, April 6, 2007 : Last updated 22:29 pm (Thai local time)



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Home > Business > Manufacturers told price freeze will continue





CONSUMER GOODS
Manufacturers told price freeze will continue

No change with end of martial law

The Internal Trade Department has asked manufacturers of consumer goods to maintain a freeze on prices despite today's lifting of martial law, in a bid to protect

consumers from rising living costs.

Director-general Siripol Yodmuangcharoen yesterday said a letter had been sent to manufacturers asking them to maintain current retail prices as long as possible.

Those who want to increase the price of goods are required to show the department their manufacturing costs over the past two years.

They also have to inform the department 15 days in advance if they want to increase retail prices.

Manufacturers were previously unable to increase prices because martial law was imposed during last September's coup.

Despite the department's request, many manufacturers of consumer goods say they will ask for price increases following the long freeze. Their products include steel, batteries and milk.

Some manufacturers, such as battery-makers, will be able to increase their prices

immediately because the increases were approved by the department before last September.

Siripol said only those

manufacturers of consu-

mer goods that could

prove their costs of manufacturing had been adversely affected by higher fuel prices or higher raw-material costs would be allowed to lift their retail prices.

"The price freeze should absorb the burden on consumers, which has already been pushed up slightly by higher fuel prices," he said, adding that manufacturers that increased their retail prices without the department's approval would be punished.

Violators will face a maximum of seven years in jail, a fine of Bt140,000 or both.

Moreover, their products may be added to the department's price-control lists, requiring monitoring every two or three days.

At present, the department has 33 products and two services on its price-control lists and 26 products on its watch lists that require monitoring each week.

Petchanet Pratruangkrai

The Nation








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