Jeonnam Province Strongly Urges Government for Rice Price Stabilization Measures under Public Interest Direct Payment System Implementation

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Jeonnam Province (Governor Kim Young-rok) announced on the 19th that it recently made a strong appeal to the government for measures to stabilize rice prices following the implementation of the Public Interest Direct Payment System.

With the abolition of the Variable Direct Payment System due to the introduction of the Public Interest Direct Payment System for the first time this year, the province requested the government to isolate the entire remaining quantity in the market if the supply exceeds demand in order to stabilize rice prices.

The government is reportedly preparing standards for the automatic rice market isolation system by revising the Enforcement Decree of the Grain Management Act ahead of its implementation from this year's harvest season.

According to the government plan, if the rice supply exceeds demand by more than 3%, or if rice prices during the off-season (July to September) or harvest season (October to December) fall by more than 5% compared to the average year, the excess quantity will be purchased.

Experts, including RPC cooperative heads, point out that agricultural products have high price elasticity, so even a slight excess in production over demand inevitably leads to a significant price drop, and if rice prices are not proactively controlled, it is difficult to expect price stability.

The province judged that it would be difficult to expect rice price stability if market isolation is carried out only when supply exceeds demand by 3% or more or when harvest season rice prices fall by more than 5% compared to the average year, as per the government plan. Therefore, it actively requested the government to purchase all quantities exceeding demand and to allow market isolation if rice prices fall by more than 2% compared to the previous year, considering that the average price over the past five years has been low.

Kim Kyung-ho, Director of the Agriculture, Livestock and Food Bureau of Jeonnam Province, said, “Rice prices have a very significant impact on farm income, and based on cases over the past few years, it is difficult to expect price stability if proactive measures are not taken. Since the Variable Direct Payment System has been abolished and the automatic rice market isolation system is being implemented this year, proactive measures such as purchasing all supply exceeding demand are absolutely necessary to stabilize rice prices.”

This content was produced with the assistance of AI translation services.