Producer Rice Price at 230,232 Won per 80kg... Korean Peasants League Strongly Condemns Government Rice Release

As of the 5th, up 0.4% from the previous period
The government decides to supply government-held rice to the market
The Korean Peasants League: "The government must explain to the public that rice prices are by no means expensive"

As the producer price of rice (per 80kg sack) has exceeded 230,000 won, the government has decided to supply government stock rice to the market. However, the Korean Peasants League is criticizing the government’s release of government rice and is calling for its immediate suspension.

According to the Ministry of Agriculture, Food and Rural Affairs on February 18, the government is reviewing plans to supply government stock rice in order to stabilize rice supply and demand, as rice prices continue to rise and the pace of increase has accelerated.

The Asia Business Daily Database

According to the producer price of rice as of February 5 released earlier by the National Data Office, the price per 20kg was 57,558 won, up 0.4% from the previous survey period. On an 80kg basis, it was 230,232 won, surpassing 230,000 won.

The producer price of rice on December 15 last year stood at 228,164 won per 80kg, up 0.1% from ten days earlier. As of December 25, it was 227,816 won, down 0.2%, but from January this year it rose by about 0.1-0.3%, staying in the range of 228,420-229,328 won. On February 5, it reached 230,232 won, continuing its upward trend.

Previously, as rice prices had continued to climb, the Ministry of Agriculture, Food and Rural Affairs put on hold its plan for a “100,000-ton market segregation of rice.” This was due to concerns that segregating 100,000 tons of rice from the market could lead to a supply shortage and further fuel rice price increases. At the same time, the ministry decided to additionally supply 60,000 tons of rice for processing use.

An official from the Ministry of Agriculture, Food and Rural Affairs said, “To determine the volume of government stock rice to be supplied, we will first conduct a demand survey this week targeting producer-area distributors, and then decide on the supply volume after taking into account the survey results and on-site inventory conditions,” adding, “The ministry will swiftly implement measures to stabilize rice supply and demand so that the burden on consumers’ grocery bills caused by the recent rise in producer rice prices does not persist.”

Farmers’ organizations are opposing the policy of releasing government rice. The Korean Peasants League said, “The government has moved into the release phase while completely excluding the committee,” and criticized, “The government’s talk of innovation in food policy and strengthening governance has already lost credibility through this release of government rice, which has rendered the Grain Supply and Demand Committee powerless.”

The Korean Peasants League went on to say, “The government is repeatedly releasing government rice and implementing rice price suppression policies under an unfounded narrative of price instability,” and argued, “What the government should do is not to depress rice prices, but to explain to the public that rice prices are by no means expensive.”

Meanwhile, according to agricultural product distribution information from the Korea Agro-Fisheries & Food Trade Corporation (aT), the retail price of 20kg of rice (standard grade) as of February 13 was 62,537 won, up 14.26% from the same period a year earlier. Converted to 80kg, this amounts to 250,148 won, an increase of 31,220 won.