As South Korea experiences a drop in onion prices due to increased production and shipping volumes, the government is expanding its purchasing and stockpiling measures. The Ministry of Agriculture, Food and Rural Affairs has announced supply and demand stabilization initiatives to address these declining prices during the harvest.
Production of early-maturing onions rose by 9.2% from last year, while the yield for mid-maturing onions increased despite a smaller cultivation area. The expected output is 1.09 million tons, marking a 3.2% rise over the previous year. In late May, onion wholesale prices were 619 won per kilogram, reflecting a 46% decrease year-on-year and a 28% dip from the average price.
To manage the situation, the government will purchase and stockpile 30,000 tons, significantly more than last year. A 'designated shipment' method is being introduced to control supply via assigned shipping points. The government will work with a self-help group to curb the shipment of 4,000 tons of lower-quality onions. NongHyup will buy and delay the shipping of 3,000 tons of mid-maturing onions to balance supply.
Efforts to boost consumption include backing up to 40% discounts at supermarkets and markets until June 4, with meetings planned with major onion buyers such as school meal providers and restaurants to encourage the usage of domestic onions. Hong In-ki, director of the distribution and consumption policy division, stated, "We are implementing proactive measures to prevent supply and demand instability ahead of the peak harvest season," and assured continued monitoring and support for producers if needed.
Source: ChosunBiz
