Government rules out price hike in consumer goods as of now
Manufacturers of consumer goods, including instant noodles, will not be allowed to increase their prices in the near future, the chief of the Department of Internal Trade said on Wednesday.
The department’s director-general, Watanasak Sua-iam, said cooperation was still being sought from manufacturers to maintain the current prices so as to mitigate the impact on consumers from the fallout of the Russia-Ukraine war.
Watanasak said the department had held talks with two manufacturers of two popular instant noodle brands after it was reported that they planned to raise their prices due to rising costs.
He clarified that the manufacturers had only raised their wholesale prices without affecting the retail prices. Watanasak quoted the instant noodle manufactures as explaining that they had simply reduced the margin they offered to retailers earlier and the move would not affect the retail prices.
Watanasak said the instant noodle manufacturers promised to continue to cooperate with the department to maintain the current prices until the economic crisis caused by the war eases.
Commenting on reports that the makers of canned pasteurised and condensed milk would raise their prices because of rising cost of tin plates, Watanasak said his department had yet to consider the issue.
Watanasak said the department had yet to consider the structure of cost of the milk to see whether the cost had really risen and by how much to approve the price hike.
“We must consider the request to increase prices with fairness to allow all sides to survive,” Watanasak said.
“Other goods will be treated in the same manner. If manufacturers want to raise prices because of rising cost, they must submit their request to the department to be considered on a case-by-case basis.
“We still seek cooperation from the manufacturers to maintain the current prices and the Commerce Ministry has no policy to allow increases in prices yet.”
He said the department is still monitoring the impact from the war in Ukraine but it still wants fertilizer traders to maintain the prices.
Regarding complaints of rising prices of raw materials for making animal feed, Watanasak said the department had yet to consider the pros and cons of the proposals for the government to lower import tariffs of soy meal and to expand the period for importing maize to avoid negative impact on local farmers.
Jakkara Yodmanee, deputy director-general of the department, confirmed that several manufacturers had submitted requests for price increases but none has been approved so far.
Jakkara said officials from his department have been monitoring the prices of consumers’ goods every day by checking the prices both in Bangkok and the provinces.
He said although consumers complained that current prices of limes had risen to about Bt5 to Bt7 per piece, the prices were still lower than during the peak period last year.
Meanwhile, Narongsak Putthapornmongkol, chairman of the Thai-Chinese Chamber of Commerce, said the chamber had surveyed opinions of its members and found that their costs had increased by over 10 per cent because of the increase in oil prices.
Narongsak said the manufacturers complained that they needed to raise prices within one to three months to survive.
