Jeonnam Province Urges Proactive Government Measures for Rice Supply and Price Stability

Jeonnam Province proactively proposed government-level measures for rice supply and price stabilization, including the prompt market isolation of stockpiled quantities in production areas, as rice prices have continued to decline since the 2023 harvest season.

According to the province on the 31st, an analysis of Statistics Korea data shows that the rice price in production areas has steadily fallen since recording 217,552 KRW/80kg on October 5 last year, reaching 194,796 KRW/80kg as of the 25th, a decrease of 11.7%.

This is mainly attributed to the passive purchasing by private companies and a reduction in public stockpiling purchases, despite the government's announcement of rice price stabilization measures for the 2023 harvest.

Because the volume of rice delivered by farmers to the Nonghyup (Korean Agricultural Cooperative Federation) is concentrated, some Nonghyup RPCs (Rice Processing Complexes) are selling at low prices to reduce inventory burdens.

Furthermore, considering that purchasing companies recorded their largest losses during the rice price crash in 2022, if the decline in 2023 rice prices continues, there are concerns that Nonghyup and private RPCs will reduce their own procurement volumes for the 2024 crop, directly harming farmers.

Accordingly, Jeonnam Province strongly urged the government to expand the 2023 food aid (ODA) new rice purchase volume from the existing 50,000 tons to 100,000 tons and to promptly implement market isolation measures for some stockpiled quantities in production areas as part of rice supply and price stabilization measures.

Kim Young-rok, Governor of Jeonnam Province, emphasized, “Considering the 20-year increase rate in rice production costs, rice prices need to be maintained at least in the 220,000 KRW range,” and added, “The government must demonstrate commitment and prepare proactive additional measures to recover the declining rice prices.”

Jeonnam Province is implementing various measures for independent rice supply stabilization, including support for the renovation of aging processing, drying, and storage facilities within the province (5 billion KRW) and expanding support for breakfast at 1,000 KRW for university students in the province (360,000 meals).

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