Thailand instant noodle makers demand first price hike in 14 years

Multiple instant noodle makers have asked Thailand's government this week to allow them to charge more for their products in order to cover rising costs, potentially paving the way for the first price increase in the staple in 14 years.

Thai law regulates the price of instant noodles and other staples. According to Reuters, five noodle brands, including Wai Wai, Mama, and Japan's Nisshin, have requested approval from the Commerce Ministry to raise their prices from 6 baht ($0.17) to 8 baht ($0.23).

Despite requests, the government previously denied price increases to some companies.

Thailand's government will reportedly consider proposals on a case-by-case basis, and any solution must be a win-win for both consumers and producers, according to Thailand's Director-General of Internal Trade, Wattanasak Sur-iam, in a statement.

Five major producers of instant noodles have requested price increases, citing rising production costs as a reason for the increase in one of the country's most popular grocery items.

According to The Guardian, the war in Ukraine, as well as droughts and floods over the past year, has caused wheat, energy, and transportation costs to skyrocket, affecting noodle prices across Asia.

In Thailand, where inflation reached 7.61% in July, down from a 14-year high the previous month, the Thai government imposes price controls on certain essential goods to relieve consumer pressure. According to the report, price caps are placed on items such as eggs, cooking oil, and noodles, which are popular among many as a cheap and convenient meal.

(With agency inputs)

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