Green Onion Prices Drop 38.6% in One Month
5.7% Lower Compared to Average Prices
Government Discount Support and Retail Industry Sales Events Effective
The price of green onions has dropped by nearly 40% in the past month. Amid the government's all-out efforts to stabilize agricultural and livestock product prices, President Yoon Seok-yeol's recent remark calling a 875-won bunch of green onions "reasonable" sparked controversy in political circles, seemingly fueling the price decline.
According to the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corporation (aT) as of the 22nd, the average consumer price for 1 kg of green onions was 2,767 won. This represents an 8.3% decrease compared to 3,018 won on the 18th, a week earlier.
On January 24th, green onions were displayed at Hanaro Mart Yangjae Branch in Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@
The downward trend in green onion prices is even more pronounced compared to a month ago. On the 22nd of last month, the average price of green onions was 4,504 won, but it has fallen by 38.6% in one month. Currently, green onion prices are also lower than the average price for the same period in previous years. The average price for green onions in late March is 2,935 won, making the price on the 22nd 5.7% lower. The average price is calculated as the three-year average excluding the highest and lowest prices from 2019 to last year.
The sharp decline in retail prices of green onions is attributed to the government's discount support measures aimed at stabilizing grocery prices. On the 6th, the government announced it would invest 20.4 billion won to reduce agricultural product delivery prices and 23 billion won for agricultural product discounts. On the 15th, it decided to increase the support amount for delivery prices and discount events, allocating a total of 150 billion won to stabilize prices.
The distribution industry has also responded by conducting its own discount events on agricultural and livestock products. Major large supermarkets held special agricultural product sales applying the Ministry of Agriculture's agricultural discount coupons (Nonghal) plus additional store discounts. E-commerce companies are also selling fruits and other agricultural products at discounted prices.
However, the price of chive green onions remains high. As of the 22nd, the average consumer price for 1 kg of chive green onions was 8,380 won, up 1.9% from 8,365 won a week earlier. This is 61.1% higher than the average price (5,201 won) and 65.3% higher than the price a year ago (5,070 won). However, it has fallen 16.4% compared to 10,026 won a month ago.
Prices of other major agricultural products besides green onions mostly show a downward trend due to the government's discount support. According to aT, the retail price of 10 apples (Fuji, commercial grade), which had been soaring to the extent that the new term "crazy apples" emerged, dropped 11.6% to 24,250 won compared to the 15th a week earlier. The retail price of 10 pears (Shingo, commercial grade) also fell 13.4% to 39,312 won compared to a week earlier.
The price of 100g of green leaf lettuce averaged 898 won, down 17.4% from 1,159 won a month ago, and the price of 1 kg of domestic peeled garlic also fell 5.7% to 9,608 won during the same period. Additionally, prices of ▲spinach per 100g (-35.5%), ▲10 cucumbers (-22.3%), and ▲1 kg of tomatoes (-17.2%) have decreased over the past month. On the other hand, prices of ▲1 head of cabbage (7.7%), ▲1 kg of onions (12.2%), and ▲100g of potatoes (3.0%) have risen over the month.
Meanwhile, on the 18th, President Yoon Seok-yeol visited the Nonghyup Hanaro Mart in Seocho-gu, Seoul, to check prices and referred to the green onion price as a "reasonable price." At that time, the Hanaro Mart Yangjae branch sold green onions at 875 won per kilogram by combining delivery price support (2,000 won), a 30% discount from the Ministry of Agriculture, Food and Rural Affairs, and the distribution company's own discount. This price was about 71% cheaper than the average consumer price of 3,018 won at that time.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
