[2022 National Audit] Jeong Hwang-geun "Amendment of Grain Act, Even with Good Intentions, Has Too Much Negative Impact, Not Helpful for the Future"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kim Hyewon] Jeong Hwang-geun, Minister of Agriculture, Food and Rural Affairs, reiterated his opposition on the 20th to the amendment of the Grain Management Act that mandates the government to compulsorily purchase surplus rice, stating that it "will not be helpful for the future."

Minister Jeong attended the comprehensive audit of the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee held at the National Assembly on the same day and said, "If the amendment to the Grain Management Act is implemented, it will solidify the surplus of rice," adding, "No matter how well-intentioned it is, the negative impact on agriculture will be enormous."

The Democratic Party of Korea is pushing forward unilaterally with the amendment to the Grain Management Act, which centers on mandatory market isolation. The government opposes this, arguing that mandatory market isolation will increase incentives for cultivation and exacerbate the structural oversupply of rice. There are concerns that the national fiscal burden will increase, leading to reduced future agricultural investment and decreased competitiveness.

The government estimates that if the amendment to the Grain Management Act passes the National Assembly plenary session and mandatory market isolation becomes a reality, the surplus rice production in 2030 will reach approximately 640,000 tons, and the cost of market isolation will conservatively exceed 1.4 trillion won annually. Compared to the scenario without mandatory market isolation, the surplus production is expected to increase by about 400,000 tons.

Referring to this, Minister Jeong emphasized, "Investment in fostering young farmers, smart farm projects, and digitalization of agricultural product distribution is important, but more of this budget must be spent on rice purchases. Mandatory rice purchase must not be allowed." He then cited a previous case in Thailand, explaining, "They raised the rice purchase price by 50%, which led to an inability to export rice abroad and a fiscal deficit exceeding 10 trillion won." Minister Jeong added regarding the amendment, "There is still plenty of time. I hope the ruling and opposition parties will have sufficient consultations."

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