Autumn-Harvest Grain Price May Drop Four Percent Compared to Last Year

This year, the purchase price of autumn-harvest grain by the government may decrease up to four percent compared with last year.

The Ministry of Agriculture and Forestry made its position clear on May 10 that it would present this plan, deferred in the Cabinet council on May 4, again on May 11.

The Ministry of Agriculture and Forestry also added that it reported its specific government purchase plan for autumn-harvest grain as 161,010 won per 80kg of first class rice, and a total purchasing capacity of 744,000 tons, to the possible replacement of Prime Minister Goh Kun in advance.

Kim Joo-soo, the vice minister of Ministry of Agriculture and Forestry explained, “Some committee members presented the opinion that they should review farmers’ income reservation plans further to decrease the purchase price of autumn-harvest grain by the government. Therefore, the Government`s purchase plan of rice was deferred, but we will now propose this plan again without any revisions because an income reservation plan for farmers is being made now.”

A purchase of autumn-harvest grain by the government is made by the Ministry of Agriculture and Forestry based on the Grain Circulation Committee, which is a committee of Ministry of Agriculture and Forestry, and then is confirmed by government bill through a resolution of the Cabinet council.

Finally, it comes into effect by agreement of the National Assembly.

Last year, the government brought a bill containing a two percent decrease in the purchase price to National Assembly for the first time since the introduction of the purchasing system in 1948, but the price was frozen pending assembly discussion.

Jin-Hup Song jinhup@donga.com