No reports of food stockpiling

There are no signs of mass stockpiling of consumer goods, says a member of the Thai Wholesale and Retail Trade Association.

Many countries, including the US, the UK, Japan and several European nations, have issued guidance encouraging households to stockpile essential supplies in preparation for emergencies, according to international media reports.

Last week, the UK government urged its citizens to prepare by keeping non-perishable food, bottled water for three days, a first aid kit, and cash. This preparation is for potential emergencies including severe weather and cyber-attacks.

"There are no signs of consumers stockpiling goods. In general, Thai consumers' purchasing power is so weak that many already struggle to meet daily expenses. How can they afford to stockpile goods?" said Somchai Pornrattanacharoen, honorary advisor to the Thai Wholesale and Retail Trade Association.

Although the fourth quarter is typically a high season for the local retail and wholesale sector, he said he expects the market to be sluggish this year.

Consumers' reduced spending power is partly a result of recent flooding, which has affected the incomes of agricultural workers.

Diesel prices exceeded 42 baht, up from around 30 baht prior to the Middle East war, a gain of 40%, which will impact travel during the fourth quarter, said Mr Somchai.

Furthermore, the government's subsidy budget is now depleted. Those eligible for the extension phase of the co-payment scheme may soon finish spending the subsidy, which could reduce demand in the retail and wholesale sector during this period, he noted.

The scheme's extension period runs from October to November, providing a subsidy covering 60% of the total payment, capped at 200 baht per day and 1,000 baht over two months.

Mr Somchai recalled that during the recent floods in Bangkok and the central and eastern regions, there was a noticeable surge in demand for canned food and ready-to-eat meals.

Canned food producers are facing challenges, as rising energy costs have affected canned fish production, with fishing vessels making fewer trips, resulting in reduced supplies.

Wattanasak Sur-iam, director-general of the Department of Internal Trade, said the department is monitoring for any stockpiling.