Requests for Purchases Beyond Public Stockpile of Milled Rice
Decline in Farm-Gate Rice Prices... Calls for Government Measures
Despite the government's measures to stabilize rice prices, which have continued to plummet, Kim Young-rok, Governor of Jeonnam Province, requested the government on the 9th to increase the allocation of the 2024 public stockpiled rice to cities and provinces.
Governor Kim also requested that the purchase of powdered rice beyond the public stockpiled rice volume and the incentive for the rice reduction agreement be changed to a separate reward.
Last September, the government announced a stabilization plan for the rice harvest season, but the price of rice based on 80kg, which was 217,000 won on October 5 last year, has fallen by 20% to 174,000 won as of September 25 this year.
The Ministry of Agriculture, Food and Rural Affairs actively promoted crop switching and the expansion of powdered rice cultivation last year to resolve the oversupply of rice, and as a result of Jeonnam Province's active participation in the government policy, it showed the highest participation rate nationwide. Jeonnam accounts for about 40% of the powdered rice cultivation nationwide.
The problem is that despite Jeonnam, which ranks first in rice cultivation area nationwide, actively participating in the government policy, it is not receiving any benefits.
While the government purchase volume of public stockpiled rice for 2024 remains the same as the previous year, the direct allocation volume by the Ministry of Agriculture, Food and Rural Affairs (powdered rice and rice reduction agreement) has increased, resulting in a 24.5% decrease in the volume allocated to cities and provinces.
In response, Governor Kim Young-rok pointed out, “While I understand to some extent the government's appropriate production policy for proactive rice supply and demand measures, it is unreasonable for the Ministry of Agriculture, Food and Rural Affairs to directly allocate government public stockpiled rice as incentives to participating farmers.” He added, “Above all, allocating public stockpiled rice to farmers who did not produce rice by participating in rice production reduction is a contradictory and illogical policy.”
Meanwhile, Jeonnam Province suffered significant damage this year due to 12 agricultural disasters including lack of sunlight, heavy rains, and record-breaking heatwaves. In addition, farmers are facing double hardships due to the plummeting rice prices and large-scale rice planthopper outbreaks. The province plans to discuss with the government the establishment of a long-term plan in the public stockpiled rice sector to ensure farmers' income security.
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