Open the explanation. Instant noodles have increased in price for the first time in 14 years, to 8 baht.

A manufacturer of instant noodles Ask the government to raise the price to 8 baht per pack. What are the reasons for asking for a price increase for the first time in 14 years?

The reason why instant noodle manufacturers ask for price adjustments

Producer of 'Wai Wai'

Mr. Weera napapruksachart, Assistant Managing Director Thai Food Products Factory Co., Ltd. explained that:

1. higher raw material costs.
2. One more effect of the very high price of oil is that the company is responsible for distributing the product itself.
3. afraid that wages will have to increase in the future.

He continued that the company has always fixed prices. Both costs and inflation have increased considerably. throughout the management of costs to survive. The company has reduced various promotions. cut discounts to stores for the past year.

This reveals the situation where the production cost of instant noodles has increased dramatically. During some months, the company’s operating results for “some products” (SKU) are in the red zone or “loss”.

Producer of 'Yum Yum'

Mr. Kittiphot Chanphaworakit of WAN THAI FOODS INDUSTRY CO., LTD. explained that:

Because the price of raw materials has increased considerably since the outbreak of the COVID-19 pandemic and has increased every year. The latest increase by about 40% is wheat flour, oil palm.
To clarify, sales abroad have been raised to double the price of Thailand.

Producer of 'Nissin'

Hijiri Fukuoka, Managing Director of Nisshin Foods (Thailand) Co., Ltd., explained that:

Faced with the same high raw material costs as others
Nissin prices in other countries, including Japan, China, the United States, India, Singapore, Indonesia, and Vietnam, increased by 5–12% in June.
“The company thinks moving the price to the right condition makes producers have a reasonable profit, able to produce products to deliver to consumers in the market continuously.”

Producer of 'MAMA'

Mr. Pun Paniangvait, Manager of the President’s Office of Thai President Foods Public Company Limited, explained that:

Because of the high-cost situation affecting the production of instant noodles, manufacturers are meeting together for the first time in 50 years. because they can’t bear the responsibility.
In the past, the price could not be moved because of the law. Noodles are essential products and strictly controlled, requiring government approval only.

Producer of "Sue Sat"

Mr. Parinya Sitdumrong, Director of Chokchai Pibul Company Limited, explained that

1. The cost of producing the product is really considered to have hit the ceiling. causing the company to request a price increase.
2. The company is facing a real loss. Not just a loss at a profit
3. There are more than 70% of 6-baht products sold in the country. and was unable to shift the cost due to the conditions. “I would like the Department of Internal Trade to consider the price with us as well. for the business to move forward. “

Do you think there will be any products that have instant noodles as the main raw material that will increase the price from now on?