• 
• 

Published on November 8, 2007

Director-general Yangyong Phuangrach said manufacturers of all three products were shouldering rising costs from skyrocketing oil and raw-material prices.

He said the cost of making the products had increased significantly this year. The government will consider allowing manufacturers to increase their retail prices next year.

The department wants to limit projected inflation to 2.5 per cent this year, so that the price increase may be approved next year.

The department yesterday met with manufacturing representatives of the three goods, following their request to be allowed to raise their prices.

However, any price increase must be based on conditions set by the department, in order to ensure a minimum impact on consumers, Yangyong said. Those conditions include a reasonable fair price and a gradual increase rather than one big jump.

The three sectors' turnover is still quite good despite the higher burden, Yangyong said. But the sectors must be allowed a price increase, because their production costs have increased continuously and will soon affect revenue.

For instance, raw materials for fertilisers rose to US$300 (Bt10,200) per tonne, from US$250 before, while chemicals used in pesticides rose from $29 per kilogram to $30. Corn prices doubled from Bt4 a kilogram to Bt8, soybean meal rose from Bt10 a kilogram to Bt14, and fishmeal increased from Bt18 a kilogram to Bt20.

Petchanet Pratruangkrai

 The Nation