KOTA BARU: The Thai government has instructed trade officials along its border to monitor the movement of cooking palm oil following reports of smuggling from Malaysia driven by high prices in Thailand.
In addition to the directive issued early this month, Thai authorities have also carried out random checks at sales outlets nationwide.
According to the 'Bangkok Post', provincial commerce office chiefs in Songkhla and Satun have been tasked with preventing palm oil smuggling from Malaysia.
Quoting Thailand's Internal Trade Department director-general Udom Srisomson, the report said Thai authorities have monitored the movement of palm oil at border checkpoints over the past weekend following a demand-driven increase in palm nut prices due to dry weather, which has driven up the retail price of cooking oil.
Domestic Trade and Cost of Living Ministry state director Azman Ismail said the ministry was not aware of the latest crackdown by Thai authorities.
However, he said, Malaysian authorities were concerned about smuggling due to the price disparity between the two countries.
"In Malaysia, cooking palm oil costs RM2.50 (about 20 baht) for the 1kg polybag, while in Thailand, it is sold for up to RM5 (39 baht)," he said.
He added that the ministry, with the help of other agencies, would continue operations against cooking oil smuggling.
According to data from the Bank of Thailand and Prince of Songkhla University, palm nut prices rose from 5.60 baht per kilogramme to 8 to 9 baht last month.
Cooking palm oil in Thailand currently retails for about 50 baht per litre, an increase from the previous month.
In Thailand, any movement of more than 25kg of palm oil requires approval from provincial trade authorities, with violations carrying fines of up to 100,000 baht and/or five years in prison.
It is learnt that the Thai Commerce Ministry is seeking cooperation from wholesalers and retail stores to maintain the retail price of bottled palm oil to help consumers.