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SATURDAY, September 24, 2022
nationthailand
Manufacturers push to up retail prices as production costs continue rising

Manufacturers push to up retail prices as production costs continue rising

TUESDAY, August 16, 2022
171

The government should allow manufacturers to increase the price of some consumer goods, the Thai Wholesale and Retail Trade Association said.

The association’s president Somchai Pornrattanacharoen said on Monday that market mechanisms and tight competition only allow manufacturers to increase the price very slightly.

However, he said, the manufacturing costs have been on the rise, and manufacturers should be allowed to adjust their retail prices to survive otherwise only big manufacturers will be left.

In a bid to survive, he said, instant noodle manufacturers will meet with the Internal Trade Department on Tuesday to find a solution because they cannot shoulder surging costs anymore.

He said it would be reasonable to increase the price of instant noodles by a baht or two, especially since the production costs have been rising. The price of instant noodles has remained unchanged for several years.

He added that if the government continues delaying the price adjustment, then manufacturers will need to find other solutions, such as discontinuing some products or creating new products with new prices. Eventually, he said, it is the consumer who will be affected.

Manufacturers push to up retail prices as production costs continue rising

Somchai also said manufacturers were also hit by hidden costs like product placement and management fees. Hence, he said, instead of targeting the retail price, the government should control these hidden costs instead.

Manufacturers push to up retail prices as production costs continue rising