As the onion production increased and shipments surged, the wholesale price dropped nearly by half compared to the previous year, prompting the government to significantly expand its purchase and stockpiling volumes. This is a measure to simultaneously prevent price declines and supply and demand instability.
The Ministry of Agriculture, Food and Rural Affairs announced on the 26th that it would implement supply and demand stabilization measures in response to falling onion prices during the harvest season.
According to the Ministry of Agriculture, Food and Rural Affairs, the production of early-maturing onions increased by 9.2% compared to last year. Although the cultivation area for mid-maturing onions has decreased, the yield has increased, and it is expected that 1.09 million tons will be produced, which is 3.2% more than the previous year. As of late May, the wholesale price of onions stood at 619 won per kilogram, a decrease of 46% from a year ago and 28% from the average.
Taking this into account, the government decided to initially purchase and stockpile 30,000 tons. This is more than three times last year's purchase volume. In addition to the existing purchase method, the government plans to introduce a new 'designated shipment' method, in which quantities will be supplied to designated shipping points when supply and demand adjustments are necessary.
In conjunction with this, the government plans to collaborate with the self-help group to encourage the non-shipment of 4,000 tons of onions that have degraded in quality, and to prevent excessive shipments, NongHyup will purchase 3,000 tons of mid-maturing onions and delay shipping for a certain period.
Measures to expand consumption will also be implemented. The government plans to support discount events of up to 40% at supermarkets and traditional markets until June 4 and will hold meetings with bulk demand sources such as school meal providers, restaurants, and food distribution companies to encourage the use of domestically produced onions.
Hong In-ki, director of the distribution and consumption policy division at the Ministry of Agriculture, Food and Rural Affairs, said, "We are implementing proactive measures to prevent supply and demand instability ahead of the peak harvest season," and added, "We will closely monitor the supply and demand situation and will do our best to ensure that producers do not face difficulties through additional measures if necessary."