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Published on March 11, 2008

While Commerce Minister Mingkwan Saengsuwan may have gained some applause from consumers, the CEOs of a number of consumer-product giants such as the Saha Group were not sure if the measure will benefit the public in the medium and long term.

Boonchai Chokewattana, president of Sahapat, one of Thailand's largest producers of consumer goods, said the government's policy was clearly a populist measure.

"I have no objection but we should ensure that the general public really benefits from such a measure," he said, adding that the move should not be just a part of a public relations blitz to project a good image.

Besides price cuts on the 60 items - such as soap, shampoo and toothpaste - the government has also moved to cap prices of diesel and cooking gas for fear of increasing inflationary pressure.

Thai soap, detergent and personal care producers' association president Prapot Nanthawatsiri said that member companies were ready to reduce prices of selected items for no longer than three months.

However, he believed the move would give only short-term relief to consumers as other items such as pork, cooking oil and dairy products have already become more expensive.

"The latest move will create a better atmosphere for a while," he said.

Dr Darmp Sukontasap, senior vice president of retail giant Tesco Lotus, said the initiative to lower the cost of living for consumers was commendable, but added that the current policy would be difficult to sustain.

"The increasing price of oil and raw materials is a big burden for everyone throughout the supply chain. And no single segment on the chain should be made to carry

the brunt of the burden," he said.

Darmp suggested the government would be better advised to pay more attention to dealing with economic growth and inflationary pressures with a longer-term view for the overall supply chain.

Pumin Nilluang, a Diethelm manager for consumer goods, said the price cuts were good for the people but would not solve the problem of higher production costs.

Darmp suggested shortening the supply chain would lower producers' costs ands increase their efficiency.

The Nation