Thailand’s drought and pests slash coconut yields, prices soar
The Agriculture Ministry revealed that the country’s mature coconut yield is expected to plummet to just 0.86 million tonnes this year, a sharp drop from last year’s 0.94 million tonnes. Blame it on a double whammy of prolonged drought and pesky infestations ravaging the country’s coconut trees.
The knock-on effect is already being felt in the markets. Commerce Minister Pichai Naripthaphan has tasked the Department of Internal Trade (DIT) with keeping a close eye on the prices of mature coconuts and coconut milk to protect consumers from price gouging.
“The DIT and provincial commerce offices will continue to monitor the coconut situation and key consumer goods prices,” said Witthayakorn Maneenet, a ministry spokesperson.
Inspections are ramping up, with provincial officers and patrol teams checking retail stores for any suspicious price hikes. Despite being available year-round, coconut prices typically spike during the low season (August to March), rising from 5 to 9 baht per coconut to a hefty 18 to 28 baht. With the current shortfall, prices have already surged to an average of 19.08 baht.
As demand for mature coconuts sits at 1.19 million tonnes, 35% goes to wholesale and fresh markets, while a whopping 65% heads to coconut milk factories. To fill the gap, factories have started importing coconuts to cope with the shortfall.
The Subcommittee on Coconut Production Management, with representatives from the government, farmers, and the private sector, is now on high alert, managing the delicate balance between supply and demand. Any business caught inflating prices will face severe penalties—up to seven years behind bars and hefty fines of 140,000 baht, reported The Nation.
In related news, Ekaphap Phonsue, spokesperson for the Ministry of Agriculture and Cooperatives, revealed that Saikrai Pimbueng, a committee member and secretary of the Farmers’ Rehabilitation and Development Fund (FRDF), recently met with Narumon Pinyosinwat, the Minister of Agriculture. The meeting aimed to discuss policies and actions concerning Thai farmers’ issues.
