On 13/3, the Bangkok Small Traders Association announced that street food vendors in the capital are set to increase prices by approximately 5 baht per made-to-order dish this month. This adjustment comes as energy, transportation, and food ingredient costs continue to surge.

Yada Pornpetrampa, President of the Association, explained that recent increases in oil and transportation costs are impacting prices across many sectors. Small and medium businesses, which are not subject to government price controls, are particularly affected, with many adjusting prices this month.

The cost pressure extends beyond fuel, she noted. Raw materials, packaging, and other consumables for food sales are also seeing price hikes, particularly fresh vegetables and daily ingredients used by vendors.

For instance, basil leaves, a staple in many Thai dishes, have increased from 35-40 baht/kg to 50-55 baht/kg, a 30-40% jump. Medium to large limes, once 3 baht per fruit, now cost 4,5-5 baht each.

Street food stalls are a characteristic feature of Thai cuisine. *Photo: The Nation*

Additionally, essential supplies for street stalls and small restaurants, such as plastic bags, hot and cold food containers, plastic cutlery, and packaging materials, have also seen price increases.

"The military conflict in the Middle East has triggered rapid price increases for many goods," Yada explained. "While some shipping costs haven't immediately risen, many suppliers are adjusting prices due to concerns about future expenses."

Vendors typically avoid small price adjustments of 1-2 baht. When an increase becomes unavoidable, they usually opt for a 5-baht hike per dish, as this amount better reflects the simultaneous rise in various operational costs.

Many vendors, however, are delaying price increases as long as possible, fearing a drop in consumer purchasing power. Excessive price hikes could prompt customers to buy less ready-made food or cook at home, ultimately reducing stall revenue.

"Many vendors are willing to accept lower profits to retain their customer base, especially their loyal regulars," she added.

The rise of remote work is also affecting many street food stalls, particularly in the Silom and Sathon districts. Many vendors depend on office workers for lunch or after-work meals. With fewer people commuting, customer numbers and sales have declined, even as input costs continue to climb.

Yada highlighted the economic vulnerability of street vendors, citing their limited capital, inability to stock large ingredient quantities, and difficulty in restructuring costs. Relocating is also challenging, as most prime areas already have established vendors.

She urged the government to implement stricter monitoring and management of consumer goods prices, extending beyond fuel and transportation to the entire supply chain. During crises like war or natural disasters, she believes market psychology can prematurely inflate prices.

*Tam Anh (The Nation)*