'Blocking Price Increases Due to Heavy Rain'... 10 Billion Won Invested in Discount Events, Contract Farming Up by 11,000 Tons

26th Price-Related Issue Meeting
Apple and Pear Contract Farming Increased by 11,000 Tons
Total of 650 Million KRW Support for Lettuce Farmers

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is speaking at a meeting on price-related issues held on the 26th at the Government Seoul Office in Jongno-gu, Seoul, attended by Minister of Agriculture, Food and Rural Affairs Jeong Hwang-geun and Minister of Oceans and Fisheries Cho Seung-hwan.

The government will invest 10 billion won in discount events to reduce the burden of price increases caused by heavy rains. The volume of contract farming for major items will be significantly increased, and cost support for affected farms will also be implemented.

On the 26th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a 'Price-related Issues Meeting' at the Government Seoul Office with Minister of Agriculture, Food and Rural Affairs Jeong Hwang-geun and Minister of Oceans and Fisheries Cho Seung-hwan, where this decision was made.

According to the discussions held that day, the government decided to invest up to 10 billion won from the end of this month through next month to expand discount events for agricultural, livestock, and marine products to alleviate the burden on low-income households' food prices. For five items heavily affected by the heavy rains (onions, lettuce, spinach, perilla leaves, and chicken), discount events of up to 30% will continue at large supermarkets and traditional markets until supply and demand stabilize. From the 27th, five additional items (potatoes, green onions, cucumbers, zucchini, and tomatoes) will be added to the discount support targets.

Although the damage from the heavy rains was not severe, major items closely related to daily life such as napa cabbage, radish, and fruits will continue to be monitored for growth. To proactively respond to supply instability during the peak season, the contract farming volume for apples will increase from 49,000 tons to 55,000 tons, and for pears from 43,000 tons to 48,000 tons. An additional 7,000 tons of summer napa cabbage stockpile will be secured.

For facility vegetables that suffered significant damage from the heavy rains, supply stabilization measures will be taken by item. Lettuce will receive support for replanting costs. A total of 650 million won will be provided for 120 hectares, which is about 40% of the flooded area. Substitute items for lettuce such as zucchini, cucumbers, and perilla leaves will receive shipment incentive payments. For chicken, the planned tariff quota of 30,000 tons will be fully imported by August, with additional increases if necessary.

Additionally, sufficient compensation plans will be prepared and implemented in August to help affected farms return to normal life as soon as possible. The finances needed for damage recovery will be covered by available government resources such as the existing budget and contingency funds. Crop disaster insurance will provide advance payments up to 50% of the estimated insurance amount upon application by affected farms, and insurance payments will begin from this day for farms whose damage assessments have been completed.

The Ministry of Economy and Finance stated, “Although the official rainy season has ended, uncertainties remain due to heavy rains and typhoons during the summer weather conditions,” and added, “The government will maintain special vigilance and make every effort to manage the supply and demand of agricultural, livestock, and marine products, stabilize prices, prevent disasters, and ensure prompt disaster recovery.”