More Zimbabwe style policies : prices hikes for milk and cooking oil rejected

The new Commerce Minister is following exactly the same policy than his predecessor, Mingkwan, AKA The Great Deflator, AKA the man who managed to reduce the price of… toothpaste (read here).

The keyword is : Zimbabwe.

And the timeline is : short term.

A perfect recipe for a disaster.

All what Chaiya is able to do is to declare inflation… illegal. 😉

A price-hike request for milk and cooking oil products has been rejected due to insufficient information while garlic and natural gas are to be added to the national price control list.

Commerce minister Chaiya Sasomsap explained the rising production cost of milk by 3.50 baht per kilogram is not reasonable, so the request to increase the price of milk products by one to 1.50 baht has been rejected.

Chaiya said he would set up a sub-committee to look into the production costs of milk and cooking oil products; moreover, he said the request has to be approved by the Internal Trade Department as well.

The minister said he would bring up the proposal to add garlic and natural gas to the national price control list to the Cabinet meeting tomorrow.

Milk product companies, such as CP-Meiji and Nhong Po asked the Internal Trade Department to increase prices by ten to 15 per cent, in line with the 20 per cent increase in their production costs.

Meanwhile, cooking oil companies still have to shoulder the cost of raw materials, as their request for a price increase of 4.50 baht per liter was also turned down by the committee. (TOC)

Those bureaucrats, politically motivated, who think that they can say to businesses that their prices are “not reasonable” live on another planet.

1 Response to “More Zimbabwe style policies : prices hikes for milk and cooking oil rejected”

  1. 1 BKK News Feed Archive - Q3/08 Trackback on 27 August 2008 at 6:41 am

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