Minister warns of rising price pressure

'Crisis upon crisis,' says Suphajee

Commerce Minister Suphajee Suthumpun says she was working closely with five other ministers to drive forward a nationwide programme aimed at promoting affordable goods to help ease rising living costs.

Commerce Minister Suphajee Suthumpun has acknowledged consumer goods are likely to become more expensive as production costs increase, despite government measures to ease the burden on households.

Speaking after chairing a meeting on cost-of-living relief on Friday, Ms Suphajee, also a deputy prime minister, said she was working closely with five other ministers to drive forward a nationwide programme aimed at promoting affordable goods to help ease rising living costs.

She said the Commerce Ministry has also held discussions with the Industry Ministry to explore ways of promoting environmentally friendly packaging. The plan centres on encouraging the use of natural plant fibres and agricultural by-products, such as sugarcane bagasse, rice straw, and other forms of biomass, as alternatives to plastic.

The meeting followed an earlier decision, announced on April 8, to classify plastic resin as a controlled commodity. The move was intended to address volatility in global markets, particularly disruptions stemming from the Middle East war that have affected raw material supply chains. By designating it as a controlled product, the government hopes to shield businesses and consumers from sharp price fluctuations.

The government is also pursuing a dual-track strategy: short-term measures to regulate key raw materials and longer-term policies to promote sustainable substitutes.

Describing the broader economic climate, Ms Suphajee said Thailand was facing a "crisis upon crisis". Economic growth remains subdued, while geopolitical tensions have driven up energy prices, compounding existing challenges.

In response, the ministry has reorganised its internal operations, particularly on price controls and cost-of-living issues, appointing additional inspectors to strengthen the Department of Internal Trade's oversight.

She said advisory teams have been established to strengthen the Department of International Trade Promotion, including economists with expertise in key markets such as China, Asean, the US and Europe, to help formulate targeted strategies.

A cluster-based approach is also being adopted to coordinate efforts across relevant ministries, the private sector at all levels and farmers.

On the issue of fertiliser, Ms Suphajee noted concerns over both pricing and supply. While fertiliser remains a controlled product and no price increases have yet been approved, existing stocks are expected to last only until mid-May.

New imports from Malaysia and Brunei are likely to be more expensive, necessitating price adjustments. Supplies from the Middle East remain uncertain due to regional tensions, while alternative sourcing from Russia is being explored.

Meanwhile, requests to raise prices for certain consumer goods, including bottled palm oil, shampoo and soap, are under review. The ministry has yet to grant approval, with officials seeking further information and considering a phased approach to prevent shortages.

"Prices will inevitably rise as new input costs come into effect," Ms Suphajee said, adding that inflationary pressures are expected to increase, particularly with higher energy prices this month.