For Rice-Producing Farms That Delivered Rice to Regional Agricultural Cooperatives and Government-Supported RPCs
[Muan=Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo] Muan-gun, Jeollanam-do, will provide 2.3 billion KRW in county funds to farmers who shipped rice to local agricultural cooperatives and government-supported RPCs.
Muan-gun plans to provide an additional 3,000 KRW per sack (40kg) to farmers who shipped rice to local agricultural cooperatives and government-supported RPCs to alleviate the anxiety of rice-producing farmers caused by the decline in rice prices during the harvest season.
Although the government quarantined 2021 rice in the market three times this year, as of September 5, the price of rice at production sites was 41,185 KRW per 20kg polished rice, down 24% from 54,228 KRW last year, marking the largest drop in 45 years.
Accordingly, local agricultural cooperatives are expected not to finalize the purchase price when buying 2022 rice, instead providing advance payments.
Although weather conditions in September are a variable, surplus 2021 rice remains in the market, and the 50,000 KRW price level may collapse. Therefore, cooperatives are likely to set advance payments between 45,500 and 50,000 KRW.
The Jeonnam Mayors and County Governors Council adopted a government proposal on August 30, urging the government to establish fundamental measures to prevent the rice price collapse and stabilize rice prices.
Accordingly, the county plans to provide production incentives for the shipment of 2022 new rice to reduce the damage to farmers struggling with rising agricultural production costs.
Starting in October this year, agricultural cooperatives and government-supported RPCs will begin their own purchases and actively start buying rice during the harvest season. The public stockpiling rice purchase will also begin with paddy rice in October and continue with dried rice purchases in November, entering a long process.
The public stockpiling rice purchase volume will increase from 350,000 tons last year to 450,000 tons this year, adding about 100,000 tons. The purchase of 450,000 tons of market-quarantined rice will be promoted within the year, significantly increasing Muan-gun’s allocation.
County Governor Kim San said, “Farmers are suffering greatly due to the continuous decline in rice prices,” and added, “The government must implement practical system improvements following the abolition of the direct payment system and establish a stable rice supply policy through amendments to insufficient related laws as part of the grain supply and demand stabilization measures.”
He continued, “Market quarantine must be mandatory when rice is overproduced, and the cultivation of other crops on paddy fields should be continuously expanded,” emphasizing, “The controversial lowest-price bidding method for market quarantine should be excluded and changed to a public stockpiling purchase method.”
Meanwhile, Muan-gun plans to respond comprehensively across the entire rice industry during the autumn harvest season to reduce farmers’ damage and actively communicate with purchasing institutions and producer organizations to respond as proactively as possible.
Muan=Asia Economy Honam Reporting Headquarters, Reporter Oh Hwan-joo gabrielw@asiae.co.kr
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