Prices for fertilizer are finally declining from their peak levels reached in May of this year. According to the Department of Internal Trade (DIT), the price of urea fertilizer is currently 20% less than it was in May. The decreased pricing were attributed to lower import costs by department officials following a conversation with three fertilizer groups.
Following the debate, DIT Director-General Wattanasak Sur-iam revealed that the cost of chemical fertilizers has already decreased by 20% from its peak levels in May. Thai Fertilizer and Agricultural Supplies Association, Thailand Fertilizer Producer & Trade Association, and Thai Agro Business Association representatives participated in the debate.
According to Mr. Wattanasak, the cost of a bag of urea fertilizer, which is commonly used in Thailand, is currently 1,300 baht. In May of this year, the cost of a single sack increased to as much as 1,600 baht. He claimed that all three associations have been instructed to remind vendors and salespeople to set pricing in line with actual costs. Officials from the department will be sent to check prices in various locations. If opportunistic price gouging is discovered, authorities will take legal action. According to the director-general, the maximum punishment for excessive fertilizer prices is either seven years in prison, 140,000 baht in fines, or a combination of both.
The Thai Fertilizer and Agricultural Supplies Association’s president, Kong-ek Plengsakdi Prakaspesat, said his organization will remind its members to drop fertilizer prices in response to lower expenses. In contrast to earlier this year, he pointed out, costs for fertilizer are not anticipated to rise significantly going forward. He explained that because the European planting season is over, there are currently too much fertilizers. But he added that the crisis between Russia and Ukraine needs to be watched since it can affect natural gas pricing. An important factor in the creation of chemical fertilizers is natural gas. A weaker baht could also result in greater fertilizer costs because all chemical fertilizers in Thailand are imported, according to Mr. Kong-ek Plengsakdi.
