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[Jai Dee]

Food centers not to raise prices

The Director-General of the Department of Internal Trade (DIT) Mr. Yanyong Puangrach (ยรรยง พวงราช), expresses his confidence that shopping malls in Thailand can prevent the prices of most food items at their food centers from exceeding 30 baht per dish.

Mr. Yanyong claims that shopping malls can fix many of the food prices at their food centers to stay between 25 and 30 baht, adding that some food centers may charge the customers a little lesser. He says food prices at food centers will be pegged, as the current inflation is affecting many consumer products.

Mr. Yanyong also says that the increase of the food prices is acceptable when the prices of their ingredients are higher. However, he says prices of vegetable oil, gas and meat will not go any higher at the moment, and he is asking food vendors to sell their food and beverage products at reasonable prices.

According to Mr. Yanyong, the DIT will allow sellers to raise their food prices only if they reflect the real costs.  

Source: Thai National News Bureau Public Relations Department - 24 January 2008

[Journalist]

Strikes me that this official is whistling into the wind.

both food prices, and the price of the fuel to cook it, are rising globally.

[Jingthing]

They can decrease the portion size.

[lazeeboy]

these places have been selling for 25/30b for over a decade ,they deserve a pay rise ,everyone else has .

[chrisole]

lazeeboy, on 2008-01-24 13:52:49, said:

these places have been selling for 25/30b for over a decade ,they deserve a pay rise ,everyone else has .

Even at 50bht it's still cheap for a shopping mall. I've been eating at a local street vendor's for the past 3 years, barbecued pork, veggies, sticky rice, large Leo for less than 100bht I wouldn't complain if the guy asked 150 as it would still be reasonable and dam_n good eating, don't know what the locals would say.
But everyone expects to pay more in a Mall due to the extra overheads.

[swain]

Jingthing, on 2008-01-24 14:37:58, said:

They can decrease the portion size.

That is already happening..  My wife is taking two noodles when one was enough before..   and before you go making fat jokes..  my little girl is light as feather and skinny.

[Seneque]

The Director-General of the Department of Internal Trade (DIT) Mr. Yanyong Puangrach

He does not care about these people, first he never eat there ... second he never heard of inflation ... third, is he a new guy from ppp or one of those civil servant that is looking for a quick way to an inactive post (retirement)

Everyone got to make a living and you simply can't tell the poorest of them all to tighten the belt even more while at the other end they are swimming in graft.

[Jingthing]

The trouble is the poorer Thai people's wages have not increased anywhere the same level as food and energy inflation. And eating these 20 to 30 baht meals is the way most Thai people eat (I like it sometimes too but I need 2 or 3 dishes to fill me up). The government might want to get involved and help subsidize these food 20 to 30 baht food providers because it is obvious their food costs have gone up, just like everyone else. Realistlically, if you are living hand to mouth and you survive off these stands, raising the price means your family goes hungry more.

Edited by Jingthing, 2008-01-24 16:05:07.

[Ijustwannateach]

Unless the government's subsidising the prices of those things they say "will not" increase in price, then the market will rule.  Even if costs don't go up, portions will go down and it will be same-same.

[Samuian]

Jingthing, on 2008-01-24 13:37:58, said:

They can decrease the portion size.

it's happening for some time now...

[Jingthing]

Ijustwannateach, on 2008-01-24 16:04:19, said:

Unless the government's subsidising the prices of those things they say "will not" increase in price, then the market will rule.  Even if costs don't go up, portions will go down and it will be same-same.

Indeed. I think I have already noticed the portions going down.

[Thai at Heart]

Jingthing, on 2008-01-24 09:06:05, said:

Ijustwannateach, on 2008-01-24 16:04:19, said:

Unless the government's subsidising the prices of those things they say "will not" increase in price, then the market will rule.  Even if costs don't go up, portions will go down and it will be same-same.

Indeed. I think I have already noticed the portions going down.

On one hand they have ludicrously low minimum wages, allow importation of migrant workers and then meddle with the food price.  

Microeconomics at its worst.

[Ricardo]

Funny how you never find one of those 10-Baht food-stands anymore, the ones started under Thaksin/TRT, guess the junta must have blown them all away ?  

[PhilHarries]

Jai Dee, on 2008-01-24 14:20:51, said:

Food centers not to raise prices
Mr. Yanyong claims that shopping malls can fix many of the food prices at their food centers to stay between 25 and 30 baht, adding that some food centers may charge the customers a little lesser. He says food prices at food centers will be pegged, as the current inflation is affecting many consumer products.
Source: Thai National News Bureau Public Relations Department - 24 January 2008

Bothers me this. Correct me if I am wrong but the food vendors are nothing to do with the malls, they just rent or lease the stall space. Therefore how can the malls fix the food price and, if they do so, will they be prepared to guarantee rents? The he goes on to say "food prices will be pegged as current inflation is affecting consumer products". This is normal economics, raw materials and fuel prices increase therefore the finished product price increases or quantity or quality decreases. Is he suggesting that somehow the market trend is bucked without government subsidies?

[apetley]

Ricardo, on 2008-01-24 17:24:10, said:

Funny how you never find one of those 10-Baht food-stands anymore, the ones started under Thaksin/TRT, guess the junta must have blown them all away ?  

They moved out to Kanchanaburi. Absolute bargain for a quick bite at breakfast or lunch.

[Tony Clifton]

Jingthing, on 2008-01-24 13:37:58, said:

They can decrease the portion size.

Been done with many other products already.

[astral]

What happened to Fried Rice or Kwayteo for 10 baht a dish??

[Khun Jean]

I think the food supplies are the lowest cost for a food stall in a mall. Consider the very high cost of obtaining a spot (sometimes in the millions of baht), the high rent, the 20-40% of the 'profit' that has to be paid to the mall and you can only make one conclusion.
The owner of the mall is making a very very healthy profit and should be 'requested' to lower his rental fees or 'freeze' them and lower the percentage of the profit that has to be paid.

[thaigene2]

Thai at Heart, on 2008-01-24 16:09:46, said:

Jingthing, on 2008-01-24 09:06:05, said:

Ijustwannateach, on 2008-01-24 16:04:19, said:

Unless the government's subsidising the prices of those things they say "will not" increase in price, then the market will rule.  Even if costs don't go up, portions will go down and it will be same-same.

Indeed. I think I have already noticed the portions going down.

On one hand they have ludicrously low minimum wages, allow importation of migrant workers and then meddle with the food price.  

Microeconomics at its worst.

yep..another poster spot on. They'll probably ban us all very soon! Nothing like the facts to get in the way of a good story (it's all Thaksin's fault!! Ok well some it is that's true..But it's been going on for decades so don't be fooled by this crap newbies! We don't like him either, but that's not the point!!)

[wasabi]

This Yaanyong guy is a joker. You can't politely ask a major commodity price to not inflate. Food is inflating and about to go through the roof. I suggest you examine the chart of DBA an Agriculture commodity stock.
http://finance.yahoo...q/bc?s=DBA&t=1y

Thailand has tried to be clever about pegging currency rates before and look what happened in 1997. This could be even worse if they think they can maneuver around and even bigger market, that of food.

Edited by wasabi, 2008-01-25 06:46:59.

[Heng]

All these subsidies and price controls just keep the masses from growing into adults.    No pain, no gain.

[Thai at Heart]

Heng, on 2008-01-25 02:12:12, said:

All these subsidies and price controls just keep the masses from growing into adults.    No pain, no gain.

Well misplaced subsidies help no body in the long run.  They cannot micromanage this kind of thing.  On one level they want to use oils for ethanol, and on the other hand they are having to IMPORT 30,000 tonnes because they got their sums wrong.  This whole agribusiness economy is rife with these little caveats to mainly protect the big man and it all feeds down to a point where last of all, they try to cap the price of a plate of food.  

Just about every foodstuff in this country has a protected price, targetted volume, punitive contract growing system or a government mandated list of purchasers that makes absolutely sure that the little man never gets ahead.  Meanwhile, the middle men (often with protected export licenses) rake in the cash, and moan to the govt when the market goes against them.  

The crop yields in Thailand are below average for most products, and the farmer rarely gets his fair price.  Then his son disappears to Bangkok for work for minimum wage because his family couldn't afford to get him educated properly and he has no future.  Lo and behold has to eat food at a government set maximum price.  

What is all missing here?  Any type of fair market and massive inefficiency for foodstuffs.

[jbowman1993]

I can' t believe i read an entire thread about noodles.  I am such a moron...

[Killroy]

At my mother inlaw we can still have noodles for 10 Bath,but you need 2 to get going these days.

I feel sorry for all the poor farmers,they struggle everyday,and how does the goverment thank them????

[Journalist]

Seneque, on 2008-01-24 17:00:48, said:

He does not care about these people, first he never eat there ... second he never heard of inflation ... third, is he a new guy from ppp or one of those civil servant that is looking for a quick way to an inactive post (retirement)

From what I gather from our well-informed poster Arkady, an 'inactive post' doesn't carry the implication of sitting around not doing any work and drinking tea whilst surfing the internet.

'Inactive post' means that you don't receive your share of the revenue that flows upwards from a myriad of original sources.