South Korea: The first application of the quota tariff for cooking oil, the industry also does not have a plan to raise it

Published 2022년 5월 18일

Tridge summary

The South Korean government is contemplating the imposition of quota tariffs on edible oil imports, specifically cooking oil, to stabilize the market amidst supply-demand imbalances and price fluctuations. This decision comes in response to increased demand and concerns over international price hikes, despite the country's self-sufficiency in domestic edible oil production being around 21%. The Ministry of Agriculture, Food and Rural Affairs is collaborating with industry stakeholders to monitor supply and demand regularly and explore support measures to ensure stability.

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Original content

The government has decided to consider applying quota tariffs to items related to imports of edible oil. This is the first time that quota tariffs have been applied to cooking oil. On the 18th, the Ministry of Agriculture, Food and Rural Affairs inspected the supply and demand of cooking oil in the meeting room of the Korea Food Industry Association, presided over by Kwon Jae-han, head of the Food Industry Policy Office of the Ministry of Agriculture, Food and Rural Affairs. Representatives from five major edible oil suppliers, including CJ CheilJedang, Lotte Food, Sajo Daerim, Nongshim, and Ottogi, attended the meeting. According to the industry, annual domestic consumption of cooking oil is 1.14 million tons, including 600,000 tons of soybean oil and 200,000 tons of palm oil. Among them, domestic production is 240,000 tons, including 200,000 tons of soybean oil and 40,000 tons of corn oil, or 21%. The remaining 900,000 tons are imported and then supplied through ...

Source: Nongmin