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November 07, 2009
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On Wednesday in front of Yeonggwang branch of Nonghyup, the National Agricultural Cooperative Federation, in South Jeolla, over 20 farmers stacked sacks of rice that they carried from their trucks. Some of them set up tents to prepare for a long-lasting sit-in protest. “Even though prices of farm machinery and oil as well as other commodities have surged, rice prices have dropped to around 130,000 won [$111.40] per 80-kilogram [176-pound] sack,” said Lee Mun-hyeong, 46, a farmer from Yeonggwang. Members of farmers’ groups around the country are already engaged in protests in front of Nonghyup branches or county and city offices. Some members have even destroyed some fields. Several farmers blocked the gates of rice-processing complexes with tractors so that the grain could not be carried in or out. Members said demonstrations are expected to intensify around Farmers’ Day, which falls on Nov. 11. They also said a massive rally is scheduled for Nov. 17 in Seoul. According to the South Jeolla Provincial Government Wednesday, the average market price of 80 kilograms of rice in a rice-producing district last month was 141,000 won, down from 158,000 won in October of last year - a 10.8 percent drop. For rice-processing complexes in South Gyeongsang, the purchase price of 40 kilograms of rice has fallen by 15.2 percent, to an average of 43,200 won from last year’s 51,000 won. In the case of South Chungcheong, the price is around 45,000 won, down from 52,000 last year. Even though the difference varies in other provinces, all of them are experiencing a slump. Experts said that the main cause is an increase in supply. The last six years have experienced bumper rice harvests. Production this year is expected to reach 4.68 million tons, experts said. A yearly average output is 4.57 million. However, the amount of consumption of rice for next year is likely to be 4.37 million tons, leaving a rice surplus of 310,000 tons. South Jeolla, which harvests 19 percent of all rice in the country, produced about 886,000 tons this year. Rice purchases by the government and Nonghyup together with rice processing complexes from South Jeolla are 120,000 and 429,000 tons, respectively. The remaining 337,000 tons of rice have to be consumed by either farm households or sold in markets. Presently, there are 820,000 tons of extra rice in the country. Meanwhile, rice consumption is dropping. Last year, per capita consumption of rice was 75.8 kilograms, down from the 119.6 kilograms consumed in 1990. Farmer groups are not only calling for more public purchases but also a resumption of rice aid to North Korea. “One certain alternative to deal with the massive rice surplus is to resume rice aid to North Korea,” said Je Hae-sik, leader of the Busan-South Gyeongsang base under the Korean Peasants League. Je added that the rice stocks have surged dramatically since the government suspended shipments of rice to the North. The Ministry for Food, Agriculture, Forestry and Fisheries said that farmers shouldn’t be so concerned since the ministry provides each farmer with fixed payments worth 700,000 won on average per hectare (2.4 acres) of land. The government is slated to purchase 11 tons of surplus rice a year and to urge local Nonghyup branches and rice processing complexes to increase purchases as well. Local governments have developed other measures to cope with surging rice supply. The South Jeolla provincial government is planning to fund other crops on 20,000 hectares of farmland by 2014. Those crops include medicinal herbs, beans and figs. South Jeolla has 187,000 hectares of rice-growing land. The city of Mungyeong in North Gyeongsang is also slated to convert 710 hectares of farmland, which accounts for 13 percent of its total, into a greenhouse complex and an orchard. Experts point out that promoting consumption of processed rice may also be an option. Last year, only 6 percent of rice was processed in Korea. The percentage in Japan is 14. “We are considering building a mill in the province that produces rice flour,” said Nam Jae-hui, an official at the South Jeolla provincial office. By Lee Hae-suk, Lee Min-yong [smartpower@joongang.co.kr] |
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