National Assembly Passes Revisions to Grain and Agricultural Product Laws to Curb Price Instability

On August 4, the National Assembly approved major revisions to the Grain Management Act and the Partial Amendment to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products. The new amendments aim to strengthen the framework for responding swiftly to instability in the supply and pricing of key agricultural commodities such as rice.

Under the revised Grain Management Act, the government is now required to systematically plan supply-demand balance acreage and set goals for transitioning rice paddies to alternative crops. This shift comes with expanded support for farmers to ensure that the conversion to non-rice crops is practically realized.

In cases of unavoidable surplus in rice supply, the Rice Supply Management Committee, with participation from more than one-third of producer organizations, will deliberate on countermeasures. The government is now mandated to implement policies in line with the Committee’s decisions, reinforcing a system of checks and accountability. This Committee will further determine the criteria for launching post-surplus measures within the parameters set by the government.

These changes are expected to reduce future instances of rice oversupply and alleviate the fiscal burden necessary to stabilize the market.

Alongside, the revised Partial Amendment to the Act on Distribution and Price Stabilization of Agricultural and Fishery Products introduces a new approach to managing supply by allowing the government and local authorities to create item-specific supply plans. These plans will encompass measures from disease and pest management to disaster prevention, covering all stages of agricultural production.

When instability in supply is detected, the government will be able to promptly launch post-market interventions, such as purchasing excess supply. Moreover, a new Agricultural Price Stabilization System is set to be created: if the average price of agricultural products falls below a designated base price, the government will support farmers by compensating for the price difference in full or in part.

The Agricultural Price Stabilization Review Committee will be tasked with identifying relevant products, while the base price will be officially set by Presidential Decree, reflecting production costs and prevailing supply-demand trends.

The Ministry of Agriculture, Food and Rural Affairs plans to fine-tune the standards and levels of support prior to the enforcement of the two revised laws in August next year, working closely with relevant agencies and conducting necessary research.

Minister Song Mi Ryeong of the Ministry of Agriculture, Food and Rural Affairs pledged to collaborate closely with the National Assembly, the agricultural sector, and experts, emphasizing proactive supply management. “We will ensure that farmers can focus on their work with peace of mind, protected from fluctuations in the price of rice and other agricultural products,” Song stated.

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”