NongHyup Economic Research Institute Report... "Food Security Must Be Specified in the Constitution"

[Asia Economy Reporter Seongpil Cho] The NongHyup Central Association's NongHyup Economic Research Institute stated in its research report titled "Volatility of Global Grain Prices and Food Security," released on the 6th, that "it is necessary to recognize food issues as national security and explicitly include food security provisions in the constitution."

According to the report, the institute expressed concern that global grain prices have been rising sharply recently, intensifying inflationary pressures. In March, the Food and Agriculture Organization (FAO) of the United Nations recorded the global grain price index at 170.1 points, marking an all-time high. Futures prices for wheat, corn, and soybeans increased by 73.9%, 36.6%, and 18.4%, respectively, compared to the same period last year.

The institute pointed out that this price increase is not a temporary phenomenon but is becoming entrenched due to factors such as the concentration of production regions, the unique nature of trade, and the monopolistic structure of the grain market. Furthermore, structural factors could exacerbate the volatility of grain prices, and under these circumstances, the issue of 'food weaponization' by major producing countries could arise at any time, according to the institute.

South Korea depends on imports for 80% of its total grain demand and is particularly vulnerable to global grain price volatility, so it must prepare accordingly. The institute cited Switzerland as an example, where food security provisions were already explicitly included in the federal constitution in 2017 to guarantee food supply to its citizens, emphasizing the need for South Korea to also enshrine related provisions in its constitution.

Additionally, the institute added, "It is necessary to codify food security policies, which are a fundamental responsibility of the state, in the National Finance Act to ensure consistent implementation." It also suggested that NongHyup should explore ways to secure global supply chains to stably import overseas feed grains into the country in the mid to long term.

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