Thailand approves first instant noodle price rise in 14 years

BANGKOK • Thailand will raise the price of the country's instant noodles, marking the first price increase for the must-have daily staple in 14 years.

The country's economy has not bounced back after fully re-opening to tourists earlier this year, and has been battered by 14-year-high inflation and the economic knock-on effects of the Russian-Ukraine war.

Prices of instant noodles are capped by Bangkok at 6 baht (S$0.23) per packet, but anxious major producers have urged the government to raise the limit to 8 baht, citing spiralling costs.

The Trade Ministry confirmed that it would approve an increase to 7 baht per regular-sized packet, effective from yesterday.

The news comes after five major Thai instant noodle producers - Wai Wai, Mama, Yam Yam, Sue Sat and Nissin - petitioned the ministry for a rise.

"We are facing rising commodity prices, oil prices for export," explained Mr Veera Naphapruk-chart from Thai Preserved Food, part of popular brand Wai Wai.

The price of wheat flour has risen roughly 20 to 30 per cent, and the price of palm oil has doubled, he said.

Mr Veera blamed rising costs on Russia's invasion of Ukraine, which was a major supplier of wheat to the kingdom prior to the conflict.

Mr Pipat Paniangvait, of Thai President Food, said the price of instant noodles was last increased in 2008.

Producers' issues have been compounded by the high export costs - thanks to rising oil and wheat prices - meaning selling abroad is not viable either.

"In the past, we were selling more outside Thailand to curb the situation here as we cannot raise the price freely," said Mr Pipat.

The Trade Ministry said it would continue to monitor the cost of production and indicated that it could adjust the price accordingly.

AGENCE FRANCE-PRESSE