Concerns Over Increased Rice Cultivation Incentives → Oversupply → Increased Fiscal Burden → Reduced Future Agricultural Investment
Government to Convey Position Before May National Assembly Plenary Session
Song Miryeong, Minister of Agriculture, Food and Rural Affairs, argued, "If the amendment to the Grain Management Act, which mandates the government to forcibly purchase surplus rice, is passed and implemented, it will deepen the structural oversupply of rice, inevitably leading to a vicious cycle of falling rice prices."
Before attending the 'Field Meeting on Responding to Rural Extinction and Revitalizing Youth Startups' held in Cheongyang, Chungnam on the 24th, Minister Song told reporters, "It is difficult to accept the Grain Management Act and the Agricultural and Fishery Products Distribution and Price Stabilization Act, which were approved for submission at the plenary session of the National Assembly," expressing her stance.
On the 18th, the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee directly referred the Grain Management Act, which includes the mandatory rice purchase system, and the Agricultural Price Stabilization Act to the plenary session.
The Grain Management Act mandates the government to forcibly purchase surplus rice. The Ministry of Agriculture, Food and Rural Affairs holds the position that if this law is implemented, it will induce overproduction of rice, which will ultimately lead to a decline in rice prices and an increase in fiscal burden, thus not benefiting agricultural development. The Agricultural Price Stabilization Act, which guarantees prices for agricultural products, is also feared to cause overproduction of specific items, leading to price drops, reduced farm income, and social conflicts due to fairness issues.
Minister Song pointed out, "Farmers also want to farm comfortably, and if the government buys and guarantees prices, a concentration phenomenon is inevitable," adding, "If the government invests limited finances in this area, it may become difficult for young people to enter rural areas and engage in digital transformation and other activities."
She also refuted the claim that the Grain Management Act contributes to food security. Minister Song said, "Rice is already in surplus, but on the other hand, we rely heavily on imports for wheat and soybeans," adding, "If the Grain Management Act is passed in this situation, rice will be overproduced even more, and we will eventually have to import more wheat and soybeans, which will negatively affect food security."
She also anticipated inevitable social confusion due to the Agricultural Price Stabilization Act. Minister Song said, "The Agricultural Product Price Stabilization Deliberation Committee is to decide which items the government will compensate for the price difference, but this will cause social chaos and conflicts," pointing out, "If the government guarantees prices based on production volume, concentration on certain items and overproduction will lower the quality of agricultural products, and production and supply of non-guaranteed products will decrease, causing price instability."
The government plans to hold a forum on the Grain Management Act and the Agricultural Price Stabilization Act before the end of May, when the last plenary session of the 21st National Assembly is held. Through the forum, the government intends to gather pros and cons from the government, experts, and farmers and deliver the government's official opposition stance to the National Assembly.
Minister Song emphasized, "The government is promoting the enhancement of food self-sufficiency and food security through the Strategic Crop Direct Payment System and the development of powdered rice, but the Grain Management Act and the Agricultural Price Stabilization Act will inevitably have a negative impact on these plans," urging, "I ask the National Assembly to reconsider these two bills."
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