Assemblyman Yoon Jae-gap Urges Market Isolation of 300,000 Tons to Stabilize Rice Prices

Statistics Korea Projects Excess Rice Production to Reach Approximately 300,000 Tons

Rice Production Expected to Increase by 9.1% This Year, While Some Regions Already Experience a 10% Price Drop

Democratic Party of Korea National Assembly member Yoon Jae-gap (Haenam·Wando·Jindo) ⓒ Asia Economy

[Haenam＝Asia Economy Honam Reporting Headquarters Reporter Kim Hyun] According to data submitted by the Ministry of Agriculture, Food and Rural Affairs, National Assembly member Yoon Jae-gap (Democratic Party, Haenam·Wando·Jindo), a member of the National Assembly Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee, expressed concerns about a rice price collapse due to a 9.1% increase in rice production compared to last year and urged the government to take preemptive market isolation measures.

This year, due to better weather conditions than last year and the conclusion of the Ministry of Agriculture, Food and Rural Affairs' 'Paddy Field Alternative Crop Cultivation Support Project,' the rice cultivation area increased by about 6,000 hectares, resulting in an estimated production of approximately 3.82 million tons of rice.

Compared to last year's rice production of 3.51 million tons, an overproduction of about 300,000 tons has raised significant concerns among farmers about a rice price collapse.

In fact, in Haenam, which produces 13.6% of Jeonnam's rice, the price of 40kg of paddy rice was traded at around 70,000 won last year, but as of early October this year, it is traded at around 63,000 won, a drop of up to about 10%.

The Ministry of Agriculture, Food and Rural Affairs has taken the stance of assessing the supply and demand situation and preparing supplementary measures, including market isolation, only in mid-November when the final rice production volume is confirmed and announced.

However, given the 9.1% increase in production compared to last year and the fact that prices during the harvest season have fallen by about 10% in some regions, the Ministry of Agriculture, Food and Rural Affairs already meets the intervention requirements for market isolation.

Moreover, regarding concerns that the 9.1% production increase forecast announced by Statistics Korea may change due to harvest season weather conditions, even considering the 3.3% error between last year's forecast and actual harvest volume, the conditions for market isolation have already been met.

Assemblyman Yoon Jae-gap pointed out, “If the Ministry of Agriculture, Food and Rural Affairs does not implement preemptive market isolation or at least promptly express its intention to intervene in the market, the rice prices that briefly recovered this year could collapse again.”

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

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