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Published on November 24, 2007

"We're hopeful that the department will consider the proposals," an executive who asked for anonymity said yesterday.

"But since the reviews are on a case-by-case basis, two products, even though they're in a similar category, may have different cost-control strategies and this may result in different increases," the source said.

Companies on September 19 submitted requests for price hikes on 588 items in 14 categories, including tyres, batteries, chemical fertilisers, canned fish, vegetable oil, detergents, dishwashing liquids and dairy products.

High oil prices have put pressure on manufacturers to seek price relief, on top of other rising costs particularly for raw materials and ingredients.

The Internal Trade Department had successfully convinced them to delay price adjustments as long as possible. But on Thursday, it let Thai President Foods jack up the Mama price by Bt1 to Bt6 a pack on January 1.

Ajinomoto (Thailand) and Thai Preserved Food Factory, the makers of Yum Yum and Wai Wai, received their approvals yesterday, conditioned on all manufacturers promising to hold off any further increases for five years.

Director-general Yanyong Phangrach said the instant-noodle makers had convinced his department that their production costs actually surged, particularly for wheat flour and palm oil. The unit cost soared from Bt1.04 to Bt1.79. Including expenses for sales, administration and transportation, the total cost was too much for the manufacturers to swallow.

Thai Edible Oil also recently proposed a 10-15 per cent hike, or Bt4-Bt5, for a Bt40, one-litre bottle of its King bran oil. Executive director Pravit Santiwattana cited the 25-per-cent increase in bran cost as the reason. He also noted that the manufacturers of Thip and Morakot vegetable oil have not yet received any go-ahead sign from the department.

The Nation