Consumer Organizations Council "Urgent Need for Measures to Stabilize Wheat Prices... Food Companies Should Refrain from Raising Prices"

On the 23rd, ramen is being sold at a large supermarket in downtown Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] The Korea Consumer Organization Council urged the government to implement stabilization measures and processing food companies to refrain from raising prices amid fluctuating wheat prices caused by the COVID-19 pandemic and Russia's invasion of Ukraine on the 23rd.

According to the Council's Price Monitoring Center investigation, the price of wheat flour rose by about 10% in December compared to January last year. Prices of processed foods such as ramen and snacks also increased by at least 3.5% and up to 12.6% between the second half of last year and the first half of this year.

The Council stated, "We understand that manufacturers are struggling to bear the rising raw material costs, but we hope they will refrain from hasty price increases, recalling the profits companies fully enjoyed when raw material prices fell."

The Council requested the government to prepare practical grain market management measures, such as diversifying import sources in the short term and expanding the self-sufficiency base in the long term, to calm market instability. It also emphasized the need for thorough investigation and sanctions to determine whether major milling companies are causing price increases through wholesale price collusion or other means.