Raids target eight firms alleged to have monopolised the coconut trade in Ratchaburi, pushing farmgate prices down
Thailand’s Central Investigation Bureau and the Department of Business Development have conducted coordinated raids at eight coconut purchasing centres and processing facilities in Ratchaburi province, targeting suspected foreign-nominee businesses.
According to local reports, the searches were carried out in cooperation with the Department of Business Development following complaints about falling prices for Nam Hom (aromatic) coconuts in the region.
Thai foreign business laws restrict foreign ownership to 49 per cent and investigators allege Thai individuals were registered as the majority shareholders, while foreign investors made business decisions, including pricing, purchasing operations, and logistics, the National News Bureau of Thailand reported.
A total of 15 companies are suspected of using Thai nationals as nominees. Eleven were based in Ratchaburi, while others were located in Samut Prakan, Pathum Thani, Samut Sakhon and Bangkok.
Authorities allege the network was able to monopolise the coconut trade and depress farmgate prices, The Bangkok Post reported.
“Coconut procurement prices for Thai growers were kept unusually low — at Bt2 to Bt5 each — and the coconuts were processed for export to other countries, especially China, at Bt35-50 each. The huge profits were transferred to the foreign investors,” said Thatphum Jaruprat, commander of the Economic Crime Suppression Division, said at a press conference.
“This practice excluded Thai farmers from normal trade systems and caused coconut prices at plantations nationwide to plunge and become unstable.”
According to a report from The Nation, Niran Multhida, director-general of Thailand’s Cooperative Promotion Department, said the department immediately moved to assist by coordinating cooperative networks from across the country to purchase coconuts from affected growers above market rates.
Caretaker commerce minister Supajee Suthumpan said the Commerce Ministry is also exploring the idea of central fruit collection, packing centres and buying hubs to provide growers with a trusted outlet for their fruit.
