Kim Jihyang Calls for Overhaul of Supply Management System at Distribution Sites
Sharp Price Hikes for Peaches, Watermelons, and Cheongyang Chili Peppers Due to Heatwaves and Heavy Rain
Seoul Agro-Fisheries & Food Corporation to Expand Shipment Incentives and Support Damaged Farms
Concerns Rise Over Government Coupon Program Potentially Fueling Further Price Increases
Due to record-breaking heatwaves and heavy rainfall, the prices of major agricultural products such as peaches, watermelons, and Cheongyang chili peppers have surged significantly compared to the previous year.
On July 29, according to data submitted by the Seoul Agro-Fisheries & Food Corporation to Kim Jihyang, Chairperson of the Seoul Metropolitan Council's Citizens' Rights and Interests Committee, during her visit to Garak Market for "On-site Inspection for Food Price Measures," the prices for 10kg of Gyeongbong peaches, 10kg of watermelons, and 10kg of Cheongyang chili peppers were 52,126 won, 37,564 won, and 79,613 won, respectively. Compared to the previous year, the price of Gyeongbong peaches rose by 63% (32,016 won), watermelons by 50% (25,001 won), and Cheongyang chili peppers by 46% (54,422 won).
This increase in agricultural product prices is analyzed as the result of decreased production due to climate impacts such as heavy rainfall and heatwaves. In addition, increased demand during the summer vacation season has also contributed to the price surge.
In its on-site report, the Seoul Agro-Fisheries & Food Corporation announced that it would expand shipment incentives to stabilize the supply of agricultural products. The corporation also stated that it would provide shipment loss compensation and defer repayment of shipment advances to support those affected by agricultural damages. Furthermore, it plans to designate and intensively manage key agricultural products that have experienced sharp price increases compared to the previous year and the average year, as well as those expected to be affected by heatwaves and heavy rainfall.
Meanwhile, in the short term, there are concerns that the government's "Livelihood Recovery Consumption Coupon" program may further drive up prices of agricultural and livestock products. In fact, when emergency disaster relief funds were distributed in 2020, prices of major livestock products such as pork (May to June, up 16.4%) and Korean beef (up 10.5%) surged. Currently, wholesale prices for domestic pork neck (100g) stand at 2,500 won, a 1.3% increase from the previous year, while prices for pork belly and Korean beef sirloin have remained slightly lower.
Kim Jihyang, Chairperson of the Citizens' Rights and Interests Committee, stated, "The city of Seoul and the corporation must protect citizens from rising grocery prices by ensuring stable supply and price stabilization of agricultural products." She also urged, "Seoul should reorganize its supply management system, focusing on key distribution sites such as Garak Market, and make efforts to provide tailored support to affected farms, including expanding shipment incentives."
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