Rice prices in South Korea are at almost all-time high with the average retail price of rice surpassing 60,000 South Korean Won (KRW) per 20kg. Minister of Agriculture, Food and Rural Affairs Song Mi-ryung while addressing a press conference said that 60,000 South Korean won per 20kg, was a psychological threshold at which consumers perceive rice as expensive.
As per the data released by the Korea Agro-Fisheries & Food Trade Corporation, the average retail price of 20kg rice was 60,294 South Korean won (South Korean won, also denoted as KRW), marking an increase of 17.2% compared to the same period last year. Data also suggest that rice prices temporarily exceeded 60,000 South Korean Won in late July but later fell to the 59,000 Korean won range after the government initiatives to offer discount support. Despite of the initiatives of government to provide discount support, rice prices in Korea have risen again to 60,000 Korean won range within a month. Some supermarket stores in certain regions of Korea sold 20kg rice at 70,000–80,000 Korean won last month. Based on Statistics Korea’s consumer price index, the rice price index also rose 11% year-on-year last month.
Rice Prices in South Korea Increases Due to Low Rice Cultivation
Rice prices in South Korea have increased due to lower rice cultivation, as attributed by the government. The government pushed ahead with the market segregation of 262,000 tons of surplus rice last year. The government last year hinted at balance between the demand and supply once the volume gets segregated. However, the rice grains did not mature well, and lower rice cultivation caused a sharp drop in milling yield. Notably, lower milling yields results in low production. Government is still hopeful to stabilise the condition as the new harvest season for the paddy crop is set to begin in October. The Ministry of Agriculture, Food and Rural Affairs (MAFRA) is considering increasing the current discount of 3,000 Korean won per 20kg to 4,000–5,000 South Korean won per 20kg.