"Mandatory Rice Market Isolation Does Not Help Agricultural Development at All," Final Appeal by Minister of Agriculture, Food and Rural Affairs

Yeo Camp Moves Toward Forced Passage... Ruling Party Considers President's 'Veto' Card

On the 17th, Jeong Hwang-geun, Minister of Agriculture, Food and Rural Affairs, held a briefing at the Government Sejong Complex to express his position on the "Amendment to the Grain Management Act." (Photo by Ministry of Agriculture, Food and Rural Affairs)

[Asia Economy Sejong=Reporter Son Seon-hee] Jeong Hwang-geun, Minister of Agriculture, Food and Rural Affairs, appealed on the 17th regarding the amendment to the Grain Management Act, which includes the 'mandatory rice market isolation' provision, saying, "It will not help agricultural development at all while a lot of public taxes are being spent to handle the already overproduced rice."

Minister Jeong held a briefing at the Government Sejong Complex in the morning and said, "The ruling and opposition parties did not sufficiently discuss and promote this, so the government is also in a difficult position." The bill mandates the government to compulsorily purchase the structurally fixed surplus rice with taxes every year due to failure in supply and demand adjustment. Last week, the bill was passed solely by the opposition party, the Democratic Party of Korea, with all ruling party members absent at the National Assembly's agenda coordination committee, and it is now pending submission to the plenary session. Considering the 'minority ruling party' composition of the National Assembly, it is highly likely to pass under the opposition party's leadership in the plenary session as well.

Minister Jeong expressed concern, saying, "When rice was scarce in the past, that policy (market isolation) was appropriate, but now rice is overproduced, so the direct payment system has been abolished and replaced with the public interest direct payment system," and added, "Nevertheless, rice consumption is decreasing more than production."

Earlier, the Korea Rural Economic Institute released a report stating that if rice market isolation is made mandatory, about 1 trillion won in annual fiscal expenditure would be required. There is concern that rice purchased once by the government would be stored for years and sold at low prices for alcohol or feed rather than for food consumption, leading to fiscal waste like a 'bottomless pit.'

The government's alternative is strategic crop direct payments and powder rice cultivation. Minister Jeong emphasized again, "A revolutionary method called powder rice has emerged, and if powder rice is cultivated along with wheat, soybeans, and forage as double cropping, strategic crop direct payments will be provided, and the effect of balancing rice supply and demand can be secured from the year after next. The government's position is that there is no need to forcibly isolate surplus rice at taxpayers' expense."

It is reported that the ruling party is also considering the option of exercising the 'presidential veto' if the bill is forcibly passed under the opposition party's leadership in the National Assembly. However, Minister Jeong responded to related questions, "It seems too early," and added, "Since the remaining procedures in the National Assembly will take some time, the government will also make efforts to communicate with the National Assembly during that period."

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