Party government quarantines 200,000 tons of rice market under continuous pressure from opposition and opposition candidates

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The party decided to isolate 200,000 tons of rice from the market to prevent a fall in rice prices. This is a measure to help farmers who are having difficulties due to the fall in rice prices. Some are concerned that it could stimulate shopping cart prices.

The Democratic Party and the government held a meeting with the party on the 28th and announced that 200,000 tons of this year's 268,000 tons of excess rice would be first isolated from the market. The rest will be quarantined if necessary. The Ministry of Agriculture, Food and Rural Affairs will decide on a detailed purchase plan in January next year after consulting with the Grain Supply and Demand Stabilization Committee. Purchased rice is stored together with public stockpile rice.

Rice production this year was 3882,000 tons, up 10.7% from last year. Farmers have increased the area of ​​rice cultivation this year, and good weather conditions have brought in a prosperous year. 268,000 tons more than the forecast for rice demand. As farmland prices continue to fall since the rice harvest season in October, farmers have been demanding the government to quarantine the market. The price of rice in production areas fell by about 10% in about three months.

The government has been delaying the decision, saying, "We will monitor the market situation further and, if necessary, immediately quarantine." This is because they did not think that the fall in rice prices was serious considering that the price of shopping carts, including other agricultural and livestock products, increased significantly, and the price of rice last year was unusually high. However, recently, Democratic Party presidential candidate Lee Jae-myung and People's Strength presidential candidate Yoon Seok-yeol insisted on 'isolation of the rice market' in succession, and even political circles put pressure on them, eventually making the decision to quarantine.

With this measure, farmers are relieved of difficulties caused by falling rice prices. However, there are concerns that the chronic overproduction of rice will not be resolved. It is also pointed out that it could encourage further inflation. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the retail price of 20 kg of rice (50,061 won) on the 28th was 9.1% lower than a year ago, but 11.4% higher than the average year (5-year average). The average price in December was 55,150 won, higher than the same month in 2016-2019.

An official from the Ministry of Agriculture, Food and Rural Affairs said, “We will come up with measures such as adjusting the area of ​​rice cultivation with producer groups and local governments so that the excessive supply and demand of rice does not repeat itself.”