Chaiwat Kovavisarach, the President and Chief Executive Officer of Bangchak Corporation Public Company Limited revealed that due to the oversupply of palm in the market, the market price for palm has deteriorated. Bangchak and its commitment to the development of the quality of life Thai society, has issued its subsidiary company, Banghcak Biofuel Company Limited, which produces B100 biodiesel, to increase its crude palm oil reserves, to help palm agriculturist during the market slump, and stimulate palm production in accordance with the policy of the Department of Energy Business, the Ministry of Energy.
Kiatchai Maitriwong, Senior Executive Vice President Bio Based Products Business Unit of Bangchak Corporation Public Company Limited, stated that Bangchak Biofuel has a daily production capacity of 810,000 liters, which uses 20,000 tons of crude palm oil each month, and from the aforementioned factors, it is currently increasing its reserves by 10,000 tons, expected to be completed by the end of June.
There is currently 400,000 tons of crude palm in the market where it normally only stocks 200,000 tons. This has resulted in a down turn of crude palm oil prices, from 27 Baht per kilogram in early May, to 23 Baht per kilogram on 19 May, 2017.