Thailand has approved a proposal to increase the price of instant noodles, the country’s trade department said on Wednesday. This is the price increase on the must-have daily staple in 14 years. The decision comes days after five major producers of instant noodles urged the Thai government to allow them to increase their prices, warning of soaring production costs, according to a report in The Guardian. The war in Ukraine, along with with droughts and floods over the past years, have sent the cost of wheat, energy and transport soaring, the outlet further said.
News agency AFP said that the trade department has approved an increase of seven baht on every regular-sized packet. It said that the new price will be become effective from August 25.
Prices of instant noodles were so far capped by Bangkok administration at six baht ($0.16) per packet.
In recent weeks, the price of wheat flour has risen roughly 20-30 per cent and the price of palm oil had doubled, said Veera Naphaprukchart from Thai Preserved Food.
“We are facing rising commodity prices, oil prices for export,” he told AFP.
The Guardian said that inflation in Thailand was at 14-year high in June, prompting the government to resort to price controls on certain essential goods to relieve pressure on consumers.
Eggs, cooking oil and noodles were among the edible items that were brought under price control are they favoured by many as a cheap and convenient meal.
In a joint letter, the manufacturers of Mama, Wai Wai, Yum Yum, Nissin and Suesat urged the government increase the price to 8 baht ($0.22).
Noodle prices have already gone up in other Asian countries like Japan and South Korea, and estimates suggest the cost of wheat could rise 30 per cent this year in China.