[Asia Economy Sejong=Reporter Son Seon-hee] Amid soaring agricultural product prices due to early heatwaves and the rainy season, the government is pushing for additional imports of cabbage, potatoes, and other items to resolve supply and demand instability.
On the 2nd, the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation (hereinafter aT) announced plans to import about 1,600 tons limited to quantities for kimchi export and supply them to kimchi companies by October to ease the increase in domestic demand. Additionally, procedures are underway to import 700 tons of Australian potatoes, which have recently seen a significant price surge. These are expected to be introduced domestically from late this month to next month.
According to the 'July Consumer Price Trends' released by Statistics Korea on the morning of the same day, agricultural product prices rose by 8.5% compared to the same month last year. The increase was particularly notable compared to the previous month (1.6%).
The Ministry of Agriculture, Food and Rural Affairs explained, "The sharp rise in agricultural product prices is due to changes in weather conditions such as early heatwaves and the rainy season in early July, as well as a decrease in cultivation area, leading to reduced production of open-field crops such as vegetables and potatoes." They added, "While the supply of rice, fruits, and facility-grown vegetables remains stable, prices are expected to remain strong for open-field crops like onions and potatoes due to decreased production." They further noted, "Supply and demand conditions for cabbage and radish are volatile due to weather disasters such as summer heatwaves and typhoons."
In preparation for supply instability ahead of the Chuseok peak season, the government has been promoting the stockpiling of 6,000 tons of cabbage and 2,000 tons of radish since June. In particular, spring cabbage production has been poor due to drought and high temperatures, leaving kimchi companies unable to secure enough cabbage for export kimchi. If companies secure export kimchi cabbage through wholesale markets, there is a risk of further price increases. Therefore, the government plans to import an additional 1,600 tons limited to 'kimchi export' quantities and supply them to kimchi companies by October.
Potatoes, which have seen a rapid price increase, have also been stockpiled since June with 6,000 tons, and some quantities have been supplied to wholesale markets since last month. In addition, procedures for importing 700 tons of Australian potatoes are underway.
Onions and garlic are also being stockpiled in certain quantities, along with efforts to introduce low-tariff quota (TRQ) volumes. For onions, 20,654 tons are planned for import, with demand applications accepted since the 11th of last month, and 1,200 tons have been introduced domestically so far. For garlic, 9,616 tons are planned for import, with a public auction for import rights announced on the 22nd of last month, and domestic introduction is expected within this month.
Kwon Jae-han, Director of the Food Industry Policy Office at the Ministry of Agriculture, Food and Rural Affairs, said, "We are doing our best to reduce the burden on consumers' grocery bills," and urged, "Given the severe current price situation, we hope that large retailers and the distribution industry will actively participate in government policies to stabilize prices."
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