Government adds items to discount scheme starting the 22nd, offering up to 20% subsidies
Export expansion and supply controls implemented alongside falling crop prices
The South Korean government is ramping up efforts to stimulate consumption and expand discount support for agricultural products to aid farming households suffering from steep price declines. Driven by favorable weather conditions and increased shipment volumes, prices for certain agricultural goods have plummeted by nearly half compared to normal years, prompting authorities to bolster domestic demand and secure overseas export channels.
According to the Ministry of Agriculture, Food and Rural Affairs (MAFRA) on the 22nd, tomatoes and zucchini have been added to the government-backed discount program starting today. This measure expands the existing discount support of up to 20%, which was previously applied to paprika, Shine Muscat grapes, green onions, and cucumbers.
In contrast to a general upward trend in consumer inflation, agricultural prices have recently been on a downward trajectory. While headline consumer inflation rose 2.9% year-on-year in September, agricultural prices fell 4.0%. This marks the third consecutive month of declines, following drops of 2.2% in July and 6.7% in August.
As of early October, the wholesale price of paprika stood at 18,304 won per 5 kilograms, 47.7% lower than the historical average. Shine Muscat prices dropped 45.2% to 6,039 won per 2 kilograms, while zucchini plunged 54.2% to 9,716 won per 20 units. Prices for cucumbers and tomatoes also remained below normal levels.
Favorable weather conditions and surging shipments fueled the price slump. Shipments of paprika and tomatoes from the Gangwon region extended longer than expected while supplies from the Honam and Yeongnam regions also poured into the market. For Shine Muscat, harvesting from open-field cultivation concentrated heavily between September and October, swelling supply.
Government and Nonghyup expand discounts alongside export support and supply adjustments
The National Agricultural Cooperative Federation (Nonghyup) is utilizing its own funds to host discount events for major agricultural products at Hanaro Mart stores through the 28th. Discounts ranging from 13% to 28% are being applied to items such as tomatoes, cucumbers, Shine Muscat, and paprika, with plans to extend the campaign period if necessary.
MAFRA is introducing seasonal, low-priced produce and corresponding recipes every week through its official YouTube channel, "Nonglewa TV." In cooperation with the Korean Dietitian Association, the ministry is also promoting initiatives to boost the consumption of seasonal agricultural goods in institutional catering services at schools and corporations.
Export support is also being reinforced. For Shine Muscat, the government plans to subsidize port incidental costs, cold storage facilities, and refrigerated vehicle rentals while expanding overseas marketing. For paprika, agricultural material subsidies and shipment contract incentives tied to export performance will be increased to align with the peak shipping season from November to December.
Supply adjustments are underway at production origins as well. Producer cooperatives for Shine Muscat, cucumbers, and zucchini are regulating the shipment of lower-grade produce, while Nonghyup and agricultural producer groups are distributing free cucumbers to hikers during the autumn peak season for outdoor activities.
Seo Jun-han, Director General for Distribution and Consumer Policy at MAFRA, said, "Consumers can purchase healthy and delicious agricultural products at affordable prices while helping alleviate the concerns of farmers," adding, "We hope many people will participate in this agricultural consumption promotion campaign."
