Selling prices at farms for some fruit such as mangosteens have recently plummeted due to an oversupply during the harvest season. The Department of Internal trade has now invited retailers including petrol stations to join a video conference with commercial affairs officials across the country, to find applicable solutions to the problem.
The quantity of mangosteen hitting the market is currently at 30 percent of the expected annual harvest, with the selling price at farms just 13-15 baht per kilogram. The oversupply situation affecting the price now requires harvested mangosteen to be sold as quickly as possible. The Department of Internal Trade’s Director General Wichai Phochanakit has ordered Provincial Commercial Affairs officials to promote marketing opportunities for the mangosteen harvest by selling 5-kilogram mangosteen packages at local Blue Flag stores; must-see markets, and provincial central markets.
The packaging measure has now resulted in 500 tons worth of mangosteen orders. Retailers and shopping malls have also responded to the situation by ordering some 7,000 tons of mangosteen in keeping with existing agreements, including an instant order for 50 tons of mangosteen from Nakhon Si Thammarat by CJ Supermarket.
Participating petrol stations will offer retailing space inside the stations for mangosteen farmers in the southern region to sell their harvest to customers. In addition, the authorities will be supporting mangosteen exports by providing six month special loans at a 3 percent interest rate for exporters able to purchase fruit direct from farmers.
The Department of Internal Trade now expects these measures will help solve the pricing issue by August, at which point the selling price at farms is expected to increase by no less than 20 baht per kilogram.
The department is also planning to negotiate with airlines operating flights to and from southern cities to offer a checked baggage fee waiver for fruit, and to hold talks with Airports of Thailand to add more fruit retailing space inside airports.
Source: Thai Visa News