Government Boosts Agricultural Consumption: Discounts, Market Access for Farmers

Government Steps In to Support Farmers Amid Falling Agricultural Prices

In an effort to bolster the agricultural sector, the government is taking measures to stimulate consumption and provide discounted support for certain farm products. With favorable growing conditions and increased output leading to price drops for some agricultural goods, the government is stepping in to support farmers facing difficulties due to declining prices.

Starting from today, tomatoes and zucchini will be added to the list of government-supported discounted items. This move expands the existing 20% discount support for products such as paprika, Shine Muscat grapes, spring onions, and cucumbers.

Agricultural prices have been on a downward trend, contrasting the overall consumer price inflation. While consumer prices rose by 2.9% year-over-year in September, agricultural prices fell by 4.0%. Agricultural prices have been on a continuous decline for three months, dropping by 2.2% in July and 6.7% in August.

The government aims to encourage domestic consumption and explore new export markets to address the falling prices and support farmers. With these initiatives, they hope to stabilize the agricultural sector and ensure the sustainability of farming communities.

Agricultural Produce Prices Plunge Amid Favorable Weather and Increased Supply

As of early October, the wholesale price of paprika stood at KRW 18,304 per 5kg, a 47.7% decrease from the average. Similarly, the price of Shin Muscat grapes was KRW 6,039 per 2kg, a 45.2% drop, while zucchini prices fell by 54.2% to KRW 9,716 for a pack of 20. Cucumber and tomato prices also remained below average levels.

The decline in prices can be attributed to favorable weather conditions and a surge in supply. For paprika and tomatoes, the extended harvest season in Gangwon Province, combined with the influx of produce from Honam and Yeongnam regions, has led to an oversupply. Shin Muscats, on the other hand, experienced an increase in supply due to the concentration of harvests from open-field cultivation during September and October.

Government and Agricultural Cooperatives Step Up Discounts, Balancing Export Support and Supply Regulation

The Agricultural Cooperatives (Nonghyup) will utilize their own funds to host a major agricultural produce discount event at Hanaro Mart until October 28th. Targeting tomatoes, cucumbers, Shin Muscats, and paprika, they will apply discount rates ranging from 13% to 28% for each item. Should the need arise, they plan to extend the event duration.

Boosting Domestic Demand and Export Support for Agricultural Products

The Ministry of Agriculture, Food, and Rural Affairs is taking proactive measures to stimulate the consumption of domestic agricultural products and enhance export support. Through its official YouTube channel, 'Nong-Rowa TV,' the ministry introduces affordable seasonal produce and recipes utilizing these ingredients on a weekly basis. In collaboration with the Korean Dietetic Association, efforts are being made to increase the consumption of seasonal produce in school and corporate cafeterias.

To further support exports, the ministry will provide financial assistance for port-related expenses, cold storage facilities, and transportation vehicles for premium grapes, known as 'Shine Muscat.' Additionally, overseas marketing efforts will be expanded. For paprika, export support will be increased during the peak shipping period of November and December, with incentives for farmers based on their export performance and shipment commitments.

On the supply side, producer associations for Shine Muscat grapes, cucumbers, and zucchini are regulating the shipment of lower-quality produce to maintain market prices. The National Agricultural Cooperative Federation and producer groups are also organizing events to distribute free cucumbers to hikers during the autumn hiking season.

"By promoting the consumption of healthy and delicious agricultural products at affordable prices, we can alleviate the concerns of our farmers," said Seo Jun-han, Director-General for Distribution and Consumer Policy at the Ministry of Agriculture, Food, and Rural Affairs. "We hope that many people will participate in this campaign to boost agricultural product consumption."