Instant noodle makers set to request 2-baht per packet increase of retail price
BANGKOK (NNT) - Makers of instant noodles are set to request a 2-baht per packet increase for the retail price of their products tomorrow (16 August). The manufacturers argue they are no longer able to absorb losses incurred from heightened raw material prices. The makers need the commerce ministry’s approval for a price increase, as instant noodles are regulated products.
In a joint press conference, manufacturers of 5 brands of instant noodles indicated they were taking losses from their operations due to heightened raw material costs. The 5 brands include Mama, Sue Sat, Wai Wai, Yam Yam, and Nissin. The manufacturers attributed the heightened costs to the Russia-Ukraine conflict and the increase in energy prices. They reported that wheat prices have risen by 2-3 folds and other raw materials have also appreciated in price. The instant noodle makers also expressed concerns about an impending rise in the minimum wage.
All 5 makers said they wanted the Department of Internal Trade to allow a price increase of 2 baht per packet. This would take the retail price to 8 baht per packet, from 6 baht at present. The manufacturers indicated they are prepared to clarify the details of their cost structure.
If approved, the 2-baht per packet increase will be the first price rise for instant noodles in 14 years. The most recent price raise was in 2008 when a packet’s retail price was raised from 5 to 6 baht.
All 5 manufacturers said they will hand their request for a price increase to the Department of Internal Trade tomorrow (16 August). They also intend to ask the department to consider the matter within this week. The manufacturers said if an increase is not approved, they will reduce the number of instant noodle packets being sold in Thailand. In this scenario, the makers will increase the amounts being exported as they are able to adjust the prices of their goods abroad.
Information and Source
Reporter : Namo Vananupong
Rewriter : Tarin Angskul
National News Bureau : http://thainews.prd.go.th