Haenam County Council Submits Petition to Central Government Urging Measures to Stabilize Rice Prices

Chairman Lee Sung-ok of the Industry and Construction Committee proposed the "Resolution Urging Measures to Stabilize Rice Prices and Promote Rice Consumption through Fundamental Solutions to the Oversupply Problem," which was adopted. ⓒ Asia Economy

[Haenam＝Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] On the 12th, the Jeonnam Haenam County Council held the 1st plenary session of the 315th extraordinary meeting and adopted the “Resolution Urging Fundamental Solutions to Oversupply Issues for Rice Price Stabilization and Rice Consumption Promotion Measures,” which was proposed by Lee Seong-ok, Chairperson of the Industry and Construction Committee, the council announced on the 15th.

Chairperson Lee Seong-ok urged, “Since rice production is expected to increase compared to the previous year, the government should prepare special measures to stabilize rice prices, such as preemptive market isolation, to prepare for the decline in rice prices during the harvest season caused by oversupply.”

This year’s rice production is expected to be 3.82 million tons, an increase of 310,000 tons compared to the previous year, while the annual consumption by our people is projected to be only 3.54 million tons, predicting an oversupply of 280,000 tons this year alone.

Moreover, the inventory of local distribution companies has accumulated to 189,000 tons as of the end of August, a 42.9% increase compared to the previous year, deepening the worries of farmers ahead of the harvest season.

However, after rice prices continued to rise following last year’s harvest season, the government conducted five public auctions of 310,000 tons of government rice stocks by August, citing price stabilization and supply shortage resolution, which decisively caused the rice price decline starting in August.

As a result, as of the 25th of last month, the local rice price was 53,816 KRW per 20kg, down 0.6% from the previous month, and was traded at a level lower than the harvest season price of 54,121 KRW last year.

Additionally, according to Statistics Korea, the cessation of support projects for cultivating other crops on paddy fields and the implementation of the public interest direct payment system caused the rice cultivation area, which had decreased by an average of 2% annually over the past 20 years, to increase by 0.8% this year for the first time in 20 years, which is also cited as a cause of the increase in rice production. In Haenam County, which ranks first nationwide in rice cultivation area, the area increased by 14.6% from 18,467 hectares last year to 21,170 hectares this year.

The currently revised “Grain Management Act” includes key provisions such as ▲ establishing grain supply and demand stabilization measures by October 15 every year ▲ government purchase of excess rice production ▲ formation of negotiation bodies ▲ and mandatory adjustment of cultivation areas.

Last July, the government announced a measure to implement “market isolation” for rice supply stabilization if new rice production exceeds demand by more than 3% or if local rice prices during the short-term or harvest season fall by more than 5% compared to the average year.

Chairperson Lee Seong-ok stated, “The government’s purchase standard should be based on buying all excess quantities,” adding, “This can reduce the market burden caused by accumulated stocks each year and promote price stabilization through rice supply and demand control.”

She also said, “The fundamental solution to the oversupply problem lies in reducing supply and increasing consumption,” and appealed for the government to establish policies to promote rice consumption and develop rice-processed and high value-added foods that can be loved by the public, noting that “currently, per capita rice consumption is 58kg, which is 48% of the 1990s level, while wheat consumption has doubled.”

The adopted resolution urging rice price stabilization and rice consumption promotion measures was delivered to the President, the Speaker of the National Assembly, major political party leaders, the Minister of Strategy and Finance, and the Minister of Agriculture, Food and Rural Affairs.

Meanwhile, on the same day, Lee Seong-ok, Chairperson of the Haenam County Council’s Special Committee for Attracting the Climate Change Response Agricultural Research Complex, concluded about a year of activities with the significant achievement of “Attracting the Agricultural Food Climate Change Response Center to Haenam County.”

Haenam=Asia Economy Honam Reporting Headquarters Reporter Kim Hyun kh0424@asiae.co.kr

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