The Commerce Ministry said on Monday that many manufacturers of consumer products are seeking permission to increase their price tags due to the rising cost of raw materials.
The most significant is the request from the producers of the world’s most inexpensive food product – instant noodles.
The manufacturers say they have been impacted by the rising cost of wheat and palm oil since the start of 2021.
In January last year, the global price of wheat stood at US$550 per tonne, but rose to $660 per tonne at the start of 2021 and then to $770 per tonne this month.
As for palm oil, the price at the start of this year averaged at 35 to 40 baht per litre but has now risen to 50 to 55 baht per litre.
In addition to rising prices of raw materials, manufacturers are also hit by the cost of government measures like anti-dumping laws and tariffs on BOPP film, which is used for packaging food products.
The Finance Ministry is also eyeing a salinity tax based on the sodium content of products, which will certainly affect the cost of instant noodles as they are high in salt content.
The Department of Internal Trade recently asked for cooperation from instant noodle makers and has agreed to review additional measures such as tariffs on BOPP film and salinity taxes.