Hampyeong-gun Rolls Up Sleeves to Support RPC and Nonghyup Struggling Amid Rice Price Collapse

1.5 Billion Invested... Partial Compensation for Losses Due to Purchase

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] Hampyeong County has stepped up support for local RPCs and agricultural cooperatives suffering from management difficulties due to the largest drop in rice prices in 45 years.

On the 8th, the county announced that it will provide loss compensation funds to Hampyeong Nonghyup Rice Cooperative Corporation (Integrated RPC) and local agricultural cooperatives (hereinafter referred to as ‘buyers’) that participated in the full purchase of regular rice.

The ‘buyers’ purchased all the 2021 production rice, but are experiencing severe financial difficulties due to a significant market price drop compared to the purchase price.

Rice prices have fallen by more than 15% compared to the previous year, and the loss amount for the regular rice volume purchased by the buyers has reached about 2.9 billion KRW to date.

Accordingly, the county plans to invest a budget of about 1.5 billion KRW, pay 650 million KRW for confirmed losses to the buyers, and support up to 820 million KRW by providing 4,725 KRW per 20kg bag for the sale of inventory to the buyers.

County Governor Lee Sang-ik said, “Since the loss occurred as a result of actively promoting the full purchase of regular rice, the county recognized the public function of the buyers and decided to proceed with this project,” adding, “We will continue to devise various support measures to stabilize rice prices.”

Meanwhile, last month, the county proposed a resolution to prevent the rice price collapse and establish price stabilization measures through the National Association of Rural Area County Governors, and this year, it is making every effort to stabilize rice prices by supporting shipment incentives for farmers shipping 2022 regular rice.

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