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Chaiya wants to extend price curbs
Exports, retail law are also priorities
Bangkok Post – 7 August 2008
PHUSADEE ARUNMAS
Commerce Minister Chaiya Sasomsab pledged yesterday to convince manufacturers to delay raising product prices for another six to eight months to help consumers deal with inflation. On his first day in office after succeeding Mingkwan Sangsuwan, Mr Chaiya also pledged to promote export growth of at least 15% this year, while overseeing prices based on reason and fact.
Any approval for higher product prices had to be reviewed in the context of overall production cost structures, he said.
''The ministry doesn't mind giving approval to certain producers to raise their prices if they have come up with appropriate and adequate reasons and the rise does not result in a severe impact on consumers,'' said Mr Chaiya.
However, he said the ministry planned to ask certain manufacturers particularly for necessary goods for living to help continue capping the prices for another six to eight months to help ease the cost of living particularly among the poor.
According to Mr Chaiya, the ministry also promised to come up with new measures to rein in inflation and move ahead with the long-delayed retail and wholesale act.
Inflation for the entire year has been forecast at 6% though it has averaged 6.7% in the first seven months.
Discussing rice policy, Mr Chaiya said he was ready to raise the issue with Prime Minister Samak Sundaravej, who recently set up and chairs a new subcommittee in charge of the entire rice distribution system.
Traditionally, rice is the responsibility of the Commerce Ministry.
Mr Chaiya said exports were also expected to grow by more than 15% this year on demand from China and India as well as some emerging markets.
The US dollar value of Thai exports rose 27.4% year-on-year to a record $16.27 billion in June, pushing first-half export growth to 23.1%, thanks largely to greater shipments of agricultural and food products.
Exports for the first half totalled $87.21 billion, up 23.1% from the same period last year. Imports rose 33.6% to $88.27 billion.
The ministry has an official export-growth target of 12.5% for 2008, and former minister Mingkwan raised the target to 15%.
''Based on the current data, I'm confident that exports this year will rise over 15% and we want to see the export figure to grow this year by up to 20%,'' said Mr Chaiya.
Pornsil Patchrintanakul, the deputy secretary-general of the Board of Trade of Thailand, said that given the trade surge in the first six months, higher purchase orders anticipated for the remaining months and weakened exchange rate, 15% export growth was likely to be achievable.
But he said he was uncertain whether 20% growth was possible given the scenario that lower oil prices would also make product prices cheaper and lead buyers to see no urgent need to import products.
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