Rice Prices Plummet Even During Chuseok Peak... Opposition to Push 'Rice Price Normalization Act' in Regular National Assembly Session

Six Amendments to the Grain Management Act Proposed This Year
Democratic Party Adopts as One of 22 Key Livelihood Legislative Tasks

[Asia Economy Reporter Oh Ju-yeon] As this year's rice harvest is expected to be abundant, the price decline continues even during the Chuseok peak season. Accordingly, the government has decided to expand the purchase volume of public stockpiled rice, which was around 350,000 tons annually, to 450,000 tons this year. However, some voices call for the legalization of rice price guarantees and market isolation measures. The Democratic Party is expected to focus on passing the 'Rice Price Normalization Act' during the September regular National Assembly session.

These days, as food prices rise daily, the price of rice, the staple grain for Koreans, is actually continuing to fall. Since October last year, the farm-gate price of rice has steadily declined and is currently below the average level. Rice farmers are experiencing a "double hardship" with reduced income amid high inflation. The photo shows the rice sales section at a large supermarket in Seoul. Photo by Hyunmin Kim kimhyun81@

According to the Legislative Information System on the 11th, there have been six proposed amendments to the 'Grain Management Act' this year alone to address the rice price collapse. The amendments, mainly proposed by opposition party members of the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, commonly include mandatory market isolation measures when rice prices collapse.

According to the amendment bill introduced by Democratic Party lawmaker Lee Won-taek on the 6th, if the excess rice production exceeds 2.5% of expectations or if the rice price during the harvest season falls by more than 4% compared to the average year, market isolation measures must be mandated according to the public stockpiled rice purchase method. Additionally, to stabilize farm income, if the harvest season price of the current year is lower than the prices of the past three years, 85% of the price difference is proposed to be supported.

Democratic Party lawmaker Yoon Joon-byung also proposed an amendment to the Grain Management Act to raise the purchase requirements for rice to a legal level and to obligate the Minister of Agriculture, Food and Rural Affairs to compulsorily purchase excess rice from agricultural cooperatives when the conditions are met. Currently, if rice production exceeds demand by more than 3% and prices fall sharply, or if the harvest season price falls by more than 5% compared to the average year, the government can purchase rice within the excess production range. However, since these are discretionary and optional provisions, the Ministry of Agriculture has been criticized for a passive attitude even when rice market isolation is required.

Within the Democratic Party, the newly formed leadership has consistently pointed out the rice price collapse issue since the last party convention, showing strong determination to pass the bill during the September regular National Assembly session.

At the 'Discussion on Tasks for Rice Price Normalization' held by the Democratic Party's Livelihood Priority Practice Group Rice Price Normalization TF on the 1st of this month, the amendment bill introduced by TF leader lawmaker Shin Jeong-hoon was presented as an alternative. According to Shin's proposed amendment to the Grain Management Act, market isolation would be announced before rice prices are formed based on crop surveys, and rice would be purchased at public stockpiled rice prices during the harvest season (October to December) to stabilize prices, as was done in 2017 under the Moon Jae-in administration. This approach legally specifies harvest season market isolation and public stockpiled rice purchase methods. The purpose is to send a strong signal to the market and prevent lowest-price bidding. A mandatory automatic rice market isolation system upon meeting activation conditions was also proposed. Furthermore, legal grounds for proactive rice production adjustment resumption and budget support were included. Sixty-two lawmakers co-sponsored the bill.

The Democratic Party plans to adopt the Rice Price Normalization Act as one of the '22nd National Assembly Livelihood Legislative Tasks' alongside laws such as the abolition of the sunset clause on truck safety freight rates and the law to prevent excessive interest rates, and push for its passage during the September regular National Assembly session.

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