(Seoul=Yonhap News) Reporter Kim Yoon-gu = The retail price of rice has surpassed the psychological threshold of 60,000 won per 20 kg.
According to a tally by the Korea Agro-Fisheries & Food Trade Corporation on the 3rd, the average retail price of rice per 20 kg was 62,940 won the previous day, a 17.2% increase from last year.
This is 14% higher than the average year.
The price of rice surged in July, exceeding 60,000 won at the end of July before the government began discount support on August 1st, maintaining the price in the 59,000 won range. However, it has risen again to the 60,000 won range within just one month this month.
Last month, some regional individual supermarket branches sold a 20 kg bag of rice for 70,000 to 80,000 won.
Agriculture, Food and Rural Affairs Minister Song Mi-ryung explained at a press conference last 7th that the 60,000 won retail price of rice is the resistance line that consumers feel is expensive.
Rice prices are soaring as the shipment of unmilled rice is imminent.
In the 'August Consumer Price Trend' released by the Statistics Korea the previous day, rice prices rose 11% compared to the same month last year, driving up the prices of agricultural, livestock, and fishery products.
The competition among local distributors to secure raw rice due to insufficient inventory is the reason behind the rising rice prices.
The Ministry of Agriculture, Food and Rural Affairs is supplying 30,000 tons of government grain to local distributors on a loan basis, as the level of inventory shortage is critical. This is a measure to resolve the problem of raw grain shortages for local distributors while minimizing the impact on the supply and demand of the upcoming harvest.
The amount supplied by the Ministry of Agriculture, Food and Rural Affairs on a loan basis from last month 25th will be released into the market starting this week and will be sold until the end of this month.
The Ministry of Agriculture, Food and Rural Affairs has attempted to stabilize consumer rice prices through discount events in the major distribution industry, but as the price increase continues, the discount rate is planned to be expanded.
The Ministry of Agriculture, Food and Rural Affairs is considering expanding the discount rate for rice prices to 4,000 to 5,000 won per 20 kg. The current discount amount is 3,000 won per 20 kg.
An official from the Ministry of Agriculture, Food and Rural Affairs said, "The goal is to prevent rice prices from rising further through grain loans and discount events."