The Party and Government Decide to Prioritize Market Isolation of 200,000 Tons of Rice... 70,000 Tons to Be Decided Later

2021 Rice Market Isolation Government-Party Meeting Held

Minister Kim Hyun-soo of the Ministry of Agriculture, Food and Rural Affairs is delivering opening remarks at the "Rice Market Isolation Party-Government Negotiation" held at the National Assembly on the 28th. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Kim Hyunjung] On the 28th, the ruling party and the government held a meeting regarding the '2021 Rice Market Isolation' and agreed to isolate 200,000 tons from the market to stabilize the rice market.

This year’s rice production is 3,882,000 tons (t), which is a 10.7% increase compared to the previous year, resulting in a surplus of 268,000 tons in supply and demand. The Ministry of Agriculture, Food and Rural Affairs, the main department in charge, judged that due to this, the price of rice at production sites has been continuously declining since the beginning of the harvest season this year, and thus made this decision.

The price of 2021 rice at production sites fell by 9.8%, from 56,803 won on October 5 to 51,254 won on the 25th.

According to the meeting, the government decided to isolate 200,000 tons from the market as soon as possible out of the 270,000 tons of production exceeding the demand for new rice. The remaining quantity (70,000 tons) will have the timing of additional market isolation decided later depending on market conditions and private stock levels.

The Ministry of Agriculture, Food and Rural Affairs plans to announce a detailed purchase plan in January next year after going through related procedures such as consultations with stakeholders.

Additionally, the Ministry plans to prepare appropriate production measures for 2022 rice, including adjusting the cultivation area of rice, in consultation with producer organizations and local governments to prevent repeated oversupply of rice.

However, some point out that the actual rice price has rather increased compared to the average year. Over the past five years excluding this year, the average rice price on the same day was 49,490 won, making this year’s price 11.3% higher.

This ruling party and government measure is also likely to act as an upward pressure on prices. The consumer price inflation rate for November, announced by Statistics Korea this month, was 3.7%, the highest level in 9 years and 11 months. In particular, the price increase rate of agricultural, livestock, and fishery products was 7.6%, which has increased the burden on grocery prices.

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