Commerce Minister Suphajee Suthumpun announced a significant restructuring of the Ministry of Commerce today, placing the Department of Internal Trade (DIT) at the forefront of efforts to combat the rising cost of living.
“Thailand is currently grappling with ‘overlapping crises’,” Suphajee said, as she cited a sluggish economic recovery further strained by geopolitical tensions, which have triggered a surge in energy prices.
To navigate these challenges, she unveiled a strategic plan to recruit specialised talent to bolster the ministry’s operational capabilities.
This initiative includes strengthening the DIT by deploying additional commerce inspectors to more effectively monitor and manage consumer goods prices.
According to Suphajee, an advisory team of specialised consultants and economists, possessing deep expertise in key markets, like China, ASEAN, the US and Europe, will be brought in to refine production and export strategies.
She said a core focus of this vision is the adoption of a ‘cluster model’, a collaborative approach that brings together other ministries, the private sector and farmers to address complex economic issues through a holistic and unified framework.
She also addressed growing concerns regarding chemical fertiliser shortages and price hikes. While confirming that fertiliser remains a price-controlled commodity with no immediate price rises authorised, she acknowledged upward pressure.
According to the DIT, current stocks are sufficient until mid-May. New shipments from Malaysia and Brunei carry higher import costs, though, which will eventually necessitate price adjustments.
Regarding stalled shipments from the Middle East, five vessels currently remain unable to depart due to ongoing regional instability.
In response, Minister of Foreign Affairs Sihasak Phuangketkeow is in Oman to negotiate safe passage through the Strait of Hormuz, a mission that industry experts like Suphajee acknowledge is particularly complex due to sensitive US-related geopolitical factors.
To mitigate potential shortages, Agriculture and Cooperatives Minister Suriya Juangroongruangkit is simultaneously working to secure alternative supplies from Russia to stabilise the domestic market.
"Once the new raw materials arrive, the Commerce Ministry will have to evaluate the cost impact and likely implement gradual price increases to minimise the shock on farmers," Suphajee said.
She also confirmed that several manufacturers have formally requested price increases for essential consumer goods, including bottled palm oil, shampoo and soap.
Indeed, four major operators have sought to raise the price of palm oil.
Suphajee intends to meet with these producers to request cooperation in staggering any price hikes and ensuring that products do not disappear from shelves.
Requests for shampoo and soap price rises are currently in the data-collection phase.
The ministry expects to conclude its review within 15 days of the initial filing.
