Thai instant noodle makers have sought a price hike from the government for the first time in 14 years. Read to know more.
This week, a number of manufacturers of instant noodles petitioned Thailand‘s government to enable them to boost the prices they charge for their goods in order to meet rising costs, potentially opening the door for the first price increase for the staple in 14 years.
The cost of instant noodles and other necessities is governed by Thai law. Five noodle companies, including Wai Wai, Mama, and Nisshin from Japan, reportedly asked the Commerce Ministry for permission to increase their pricing from 6 baht ($0.17) to 8 baht ($0.23). The government previously rejected price rises for several businesses despite requests.
Thailand’s government puts price control on several vital items
Thailand’s government puts price controls on several essential items in an effort to ease consumer pressure. Inflation in the country reached 7.61% in July, a 14-year low from the previous month. Eggs, cooking oil, and noodles—favored by many as a cheap and convenient meal—and building supplies are subject to price limitations.
As a result of the Ukraine conflict, recent droughts and floods, and rising energy and transportation expenses, noodle prices have increased throughout Asia. The major instant noodle companies have asked for price increases, citing increased manufacturing costs as the cause of the rise in one of the most well-liked grocery items in the nation.
Any solution must benefit consumers and producers
According to Thailand’s Director-General of Internal Trade, Wattanasak Sur-iam, any solution must benefit both consumers and producers, and the government will allegedly take each idea into consideration individually.
Although Thai media reported that the commerce minister thought a rise to 8 baht was excessive and would put an undue burden on consumers, the government is still taking their request into consideration.