South Korea will stabilize garlic and onion prices
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The South Korean government selected garlic and onions as the first products covered by a new agricultural price stabilization system. If the average price of these crops falls below a certain level, the government will compensate farmers up to 80 percent of the typical wholesale price.
The Ministry of Agriculture, Food and Rural Affairs held its first Agricultural Price Stabilization Committee meeting to discuss the details of this program.
The price stabilization system will support farmers by covering the difference between average prices and a set standard when prices drop. Officials initially focused on garlic and onions because these crops experienced significant price fluctuations due to harvest conditions. The government will determine standard prices by considering production costs and reflecting 80 percent of the average wholesale price. They will calculate average prices based on the quality of the produce, good, medium, and poor.
For crops with highly variable prices, the government plans to combine this support with measures to adjust planted acreage and production volume. Farmers who cultivate 1,000 square meters or more of these crops and have registered their farms or declared their land will be eligible for support. The government will also require farmers to report their actual planted acreage during planting season to encourage proactive supply management.
Local governments that do not follow legal supply plans will receive different levels of funding for related projects and the price stabilization system. The committee will meet again later this year to discuss expanding the program to include more products.
