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Pricing pressure affects all traders

If petrol prices rise unceasingly, vendors will be forced to increase the prices of their goods as customers cut down on their expenses by not buying unnecessary items.

Published on November 4, 2007



Chukij Saekoew, a 35-year-old pork vendor at On Nuj fresh market in Bangkok, says he has not increased his prices since the beginning of the year, whereas the cost of pork has increased by Bt4 per kilo in the last two weeks, forcing him to spend more than Bt2,000 a day.

"The Internal Trade Department has forced pork vendors not to increase prices though our costs have increased. So if prices rise continually because of the rise in petrol prices, I will also have to increase the cost of my pork," Chukij said.

Surin Samak-kasatetakorn, 56, a fruit vendor, said the market had been sluggish this year - and few people came to shop there.

"When oil prices rise, transportation costs also increase and this also adds to the cost of the produce.

At present, I can sell only a small amount of fruit, and the fruit prices have increased already, especially guava. I have to increase my fruit prices, too, but not too much," she said.

The rising price of some fish has also forced a vendor to increase his prices.

Suranan Panya, 34, a fish vendor at the market, said he only made a small profit due to the higher cost of fish and fewer customers.

"I had better sales last year," Suranan said. "I can only solve the problem by increasing the price of some fish, like butterfish. But if the cost of some fish is too expensive, I won't buy them to sell until the prices have fallen."

According to a recent Kasikorn Research Centre survey, respondents said oil prices, cooking gas prices and production costs were the main reason for the higher price of goods and services - and they saw no sign of prices dropping.

It also said most respondents were cutting back on their spending to a greater degree than last year.

The Commerce Ministry reported that the Consumer Price Index (CPI) of all commodities had increased 0.6 per cent in September from August.

The main factors were the price increases of rice, fruit, eggs, dairy products and non-alcoholic beverages, which pushed the CPI of food and beverages up by 0.5 per cent.

The September CPI increased 2.1 per cent compared to the CPI of the same month last year.

"I cannot buy less quantity because I've a large family, but I am cutting down on buying clothes to save for the essentials instead," said Kanchana Homla-au.

Ratchanok Sulumnat added: "I have cut back on buying cosmetics, clothes and other unnecessary things. Last month I did not buy any clothes at all. I have to save as much as I can because I've just graduated and I'm seeking

a job."

Wannapa Phetdee

 The Nation


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