Assemblyman Seo Samsuk: "Support Measures for Rice Production Decline Must Be Established First"

Concerns Over Damage from Rice Price Decline for Farmers Amid Production Decrease

The Reality That a Bowl of Rice Costs Less Than One-Sixth of a Cup of Coffee

Democratic Party of Korea Assemblyman Seo Sam-seok (Yeongam·Muan·Shinan) / ⓒ Asia Economy

[Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo] Regarding compensation for the decrease in rice production caused by repeated typhoons and heavy rains, the Ministry of Agriculture, Food and Rural Affairs, which had been passive by saying "rice prices have risen," has announced that it will release 370,000 tons of government rice stocks into the market. This has sparked controversy as it could lead to a further drop in rice prices in addition to the production decrease caused by the disaster.

On the 24th, Seo Sam-seok, a member of the Democratic Party of Korea (Yeongam, Muan, Sinan), strongly criticized, saying, "In a situation where food self-sufficiency and the value of rice are being re-evaluated due to COVID-19," and "The agricultural authorities are consistently pursuing irresponsible policies that are disconnected from the voices on the ground, ignoring disaster damage compensation measures for rice farmers."

Seo also pointed out, "Although rice prices have risen compared to the previous year, the voices on the ground see this as a realization of previously undervalued prices," adding, "It is a stark reality that a bowl of rice costs less than a cup of coffee."

In fact, as of the 23rd, the average retail price of rice is 60,000 KRW per 20 kg, which converts to only 600 KRW for a 200g bowl of rice. This is less than one-sixth of the price of branded coffee in the market, which ranges between 4,000 and 5,000 KRW.

The proportion of rice expenditure in household spending is also minimal. According to Statistics Korea, out of the average monthly household consumption expenditure of 2,945,000 KRW in the third quarter of 2020, only 22,000 KRW was spent on grains such as rice and beans, accounting for just 0.7%.

The profitability of rice farming is also deteriorating. According to Statistics Korea, the net profit margin per hectare, which was 48.3% in 2000, decreased by more than 15 percentage points to 32.9% in 2019. In monetary terms, this dropped from 5 million KRW to 3.8 million KRW, meaning that even if a farmer cultivates 3,000 pyeong of rice in 2019, only about 3.8 million KRW remains in the farmer's hands.

Seo Sam-seok said, "In a situation where we must proactively prepare for the possibility of continued rice production decline due to abnormal climate and reduction in farmland area, it is very inappropriate to prioritize market release measures over disaster damage compensation," and added, "Establishing support measures for farmers regarding the decrease in rice production should come first."

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