Instant noodle makers ask Thailand for price hike after 14-year peg
15/08/2022 12:24
BANGKOK, Aug 15 (Reuters) - Instant noodle makers asked
Thailand on Monday to allow them to charge more for their
products to meet rising costs, potentially paving the way for
the first price hike in the staple for 14 years.
The prices of instant noodles and other staples are
controlled under Thai law. Five producers of noodle brands
including, Mama, Wai Wai and Japan's Nisshin said they were
seeking approval from the Commerce Ministry to increase prices
of their products from 6 baht ($0.17) to 8 baht ($0.23).
Some companies have previously been denied requests to
increase prices by the government.
"The price of oil has increased considerably due to
Russia-Ukraine conflict," said Weera Napapruekchat, Vice
President of Thai Food Products Factory, which makes Wai Wai,
adding that the price of wheat flour and palm oil have also
risen sharply.
Weera said that some of its products were being sold at a
loss and that it would reduce sales in Thailand and switch to
overseas markets, where it has already increased prices, if
approval is not granted.
The government will consider proposals on a case-by-case
basis and any solution would have to be a win-win for both
consumers and producers, Thailand's Director-General of Internal
Trade Wattanasak Sur-iam said in a statement.
($1 = 35.4700 baht)
(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng;
Editing by John Geddie)
((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
+66854849033;))