Assemblyman Joo Cheol-hyun Urges Measures Against Fertilizer Raw Material Price Increases

Like in 2008, the government should allocate support budgets in response to fertilizer price increases

[Yeosu=Asia Economy Honam Reporting Headquarters, Reporter Sim Kyung-taek] It has been suggested that the burden of fertilizer price increases due to the China-originated ‘element crisis’ should not be passed solely onto farmers and companies, and that active sharing measures by the government and NongHyup should be considered.

Joo Cheol-hyun, a member of the Democratic Party of Korea and National Assemblyman for Yeosu City Gap, Jeollanam-do, urged the Minister of Agriculture, Food and Rural Affairs on the afternoon of the 8th during the full meeting for the 2022 budget approval of the National Assembly’s Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee to prepare urgent measures including the realization of fertilizer prices amid the sharp rise in raw material prices such as element.

In particular, Assemblyman Joo pointed out that when fertilizer prices rise, the burden should not be placed solely on farmers and fertilizer manufacturers, and requested that active sharing measures by the government and NongHyup also be reviewed.

Currently, the Ministry of Agriculture, Food and Rural Affairs and NongHyup estimate that the increased burden on farmers due to the rise in fertilizer raw material prices caused by the recent element supply shortage will reach 442.7 billion won (427,710 won per household), and have begun preparing urgent countermeasures.

In 2008, the Ministry of Agriculture, Food and Rural Affairs also introduced an emergency support measure to assist farmers by allocating 30% of the additional burden on farmers as a supplementary budget in response to fertilizer price increases caused by rising raw material prices.

At that time, fertilizer prices were raised from June 19, and among the expected additional burden of 100.5 billion won on farmers, the government bore about 30%, NongHyup and the fertilizer industry about 40%, so farmers actually bore only 18% of the increase.

While maintaining the government policy direction of ‘reducing chemical fertilizer usage,’ the expected damage to farmers and the fertilizer industry was so significant that temporary support was provided through supplementary budget allocation.

As the government transfers the organic fertilizer support project, which will replace chemical fertilizers, to local governments starting next year, the 2022 budget plan does not even include such allocation, making the government’s role in addressing the sharp rise in fertilizer prices even more critical than before.

Assemblyman Joo Cheol-hyun emphasized, “Not only element but also fertilizer raw material prices have surged, making the realization of mineral fertilizer prices inevitable,” and added, “In the process of preparing comprehensive and permanent measures, the burden of fertilizer price increases should not be passed solely onto farmers and companies.”

He further proposed, “The Fertilizer Control Act stipulates that the government can support NongHyup Central Association’s fertilizer supply costs and deficits, so a budget for mineral fertilizer support due to fertilizer price increases should be promptly included in the government’s budget, as was done in 2008.”

Yeosu=Asia Economy Honam Reporting Headquarters, Reporter Sim Kyung-taek simkt7@asiae.co.kr

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