Ruling Party and Government: "Amendment to Grain Management Act Will Lead to Long-Term Rice Price Decline... Will Persuade Opposition"

The Democratic Party requests the government to prepare alternative measures for rice supply stabilization instead of the amendment
"Even if the Grain Management Act is amended, rice prices won't rise
Japan has faced this issue for 30 years"
Agriculture, Food, Rural Affairs Committee schedules a full meeting tomorrow morning
Remains silent on the 'Presidential veto'

Seong Il-jong, Chairman of the Policy Committee of the People Power Party, is attending the party-government consultation meeting on the Grain Management Act held at the National Assembly on the 18th, delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Hyunju Lee and Hyunji Kwon] As the Democratic Party of Korea is pushing for the Grain Management Act, which mandates the government to compulsorily purchase surplus rice, on the 18th, the People Power Party requested the government to actively pursue various measures that can stabilize rice supply and prices without amending the bill.

Seong Il-jong, the policy chief of the People Power Party, stated at a briefing after a party-government consultation on the Grain Management Act, "The government and ruling party agreed that the amendment to the Grain Management Act could deepen the oversupply structure of rice, increase fiscal burdens, and negatively affect the future development of agriculture."

Seong said, "We agreed that reducing rice cultivation area by growing alternative crops instead of rice and expanding the related budget would help practical agricultural development and farmers' income," adding, "The Democratic Party plans to pass the Grain Management Act tomorrow (the 19th), but since there is still time, we agreed to negotiate with the Democratic Party on various proposals for practical income guarantees for farmers."

The People Power Party intends to persuade the Democratic Party once again. Seong said, "Is there any way when multiple parties push through by force?" but also pointed out, "There have been bad precedents like the '검수완박' (complete withdrawal of prosecution powers), the three lease laws, and the Corruption Investigation Office law, and in the long term, the Grain Management Act amendment will not benefit farmers either." He added, "When a similar law to the Grain Management Act was enacted in Thailand, the Thai government faced a fiscal deficit of 12 trillion won in 2012 and 15 trillion won in 2013," noting, "This was one of the causes of the coup d'?tat, and in the long term, it is not beneficial even for farmers."

Seong said, "Farmers might welcome guaranteed stable rice prices, but due to market limitations, according to a report commissioned by the Ministry of Agriculture, Food and Rural Affairs, rice prices do not rise even with government purchases," adding, "Japan has been facing this problem for 30 years. In the long term, rice prices tend to fall, so I requested that the government explain this to Democratic Party lawmakers."

The government plans to propose including in the law a provision for proactive efforts to stabilize rice prices and present research findings that the mandatory rice purchase measure has a minimal impact on rice price declines.

In the current situation where the ruling party holds a minority, if the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, chaired by the Democratic Party, holds a plenary session and passes the bill, there is no way to block it. The committee announced it will hold a plenary session at 10 a.m. the next day to vote on the bill. The remaining option is the presidential veto. When asked whether they would recommend the president to exercise the veto, Seong replied, "Negotiations between the ruling and opposition parties remain, and it is not the stage to discuss that yet."

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