The Ombudsman is preparing to visit Ratchaburi to investigate allegations of collusion involving foreign nominees in coconut depots, which has caused aromatic coconut prices to plunge.
On 30 March 2026, Mr. Songsak Saichue, Chairman of the Office of the Ombudsman, disclosed progress on complaints regarding the falling prices of coconuts. He plans to lead a delegation to Ratchaburi on 3 April to hear issues from farmers and relevant agencies after suspicions arose about possible price collusion among coconut depots and foreign nominee investors.
Mr. Songsak said that during this visit, the Ombudsman has invited key agencies such as the Department of Internal Trade, the Department of Business Development, and the Office of Trade Competition Commission to establish two-phase measures. In the short term, they will investigate whether price collusion actually occurred during procurement and seek intervention measures to alleviate farmers’ immediate hardships. In the long term, they plan to improve the supply chain structure—from coconut plantations and logistics to exports—and strengthen farmer cooperatives to better manage their produce.
"We need to identify weaknesses throughout the entire process, from origin to distribution to retail and wholesale, to ensure the most competitive market," Mr. Songsak stated. He acknowledged several negative factors currently at play, including the large coconut output in 2025 and the issue of foreign nominees establishing depots. While current laws allow 100% foreign ownership of packing and export facilities without requiring a 51% Thai shareholding, this loophole empowers foreign investors to dominate the market and control prices.
The Ombudsman Chairman emphasized that if foreigners are found to be illegally acquiring fruit orchard land, it will clearly violate the Alien Business Act. However, he admitted enforcement remains difficult because new nominee laws and land reclamation legislation are still being revised and have not yet come into effect.
Regarding proposals to establish a centralized depot to manage agricultural product procurement by the government, Mr. Songsak said he awaits information from the Ministry of Commerce on its feasibility. He is preparing to meet the Minister of Commerce to expedite the implementation of concrete nominee laws. The findings from this field visit will be promptly compiled into recommendations and submitted to the government.