Last week, torrential rain, equivalent to that of a deluge, fell nationwide, triggering emergencies for crop harvests. Concerns are growing that the supply shortage due to poor agricultural yields will lead to an increase in food prices on dining tables.
In regions such as Geumsan in Chungcheongnam-do, Goheung in Jeollanam-do, and Yeongyang in Gyeongsangbuk-do, where peppers are primarily grown, summer vegetables and fruits like radishes, potatoes, and watermelons are experiencing price fluctuations due to damage from heat waves and heavy rain.
According to the Ministry of Agriculture, Food and Rural Affairs on the 21st, it has been preliminarily counted that 28,491 hectares (ha, 1 ha = 10,000㎡) of crops, including rice, field beans, peppers, and watermelons, have been submerged due to the heavy rain that has continued since the 16th. This is equivalent to the size of 40,000 soccer fields.
Of the damaged crops, rice covered the largest area at 25,065 ha. Additionally, field beans at 2,050 ha, peppers at 227 ha, melons at 140 ha, watermelons at 133 ha, and strawberries at 110 ha have also been reported as suffering from flooding.
By region, Chungcheongnam-do accounted for over half of the total damage area at 16,710 ha, followed by Jeollanam-do (7,612 ha) and Gyeongsangnam-do (3,731 ha). In particular, pepper-producing areas such as Geumsan in Chungcheongnam-do, Yeongyang in Gyeongsangbuk-do, and Goheung in Jeollanam-do have suffered significant damage due to heavy rain during the monsoon season causing bending and flooding. Root vegetables such as radishes and potatoes have reportedly rotted due to mud covering them.
With concerns over the deteriorating supply of field crops, prices in the market are surging. According to the Korea Agro-Fisheries & Food Trade Corporation (aT), the average retail price of a watermelon as of the 18th is reported to be 30,866 won. This is a rise of 41.0% compared to a month ago and 44.6% compared to the same day last year. The price of chamoe (based on 10 pieces) is also up to 16,856 won, a 20.0% increase from a year ago. The Ministry of Agriculture, Food and Rural Affairs anticipates that due to flooding damages to watermelons in Buyeo and melons in Damyang and Gokseong, alongside seasonal fruit demand, prices will remain high compared to the previous year for the time being.
Vegetable prices are also soaring sharply. The average retail price of a cabbage has risen to 4,950 won, a 43.1% increase compared to the previous month, while lettuce (100g) jumped to 1,283 won, reflecting a 40.5% rise in just a month. The price of cucumbers (based on 10 pieces) has also shown an increase to 12,188 won, up 15.0% from the previous month.
Livestock products are also facing inevitable supply disruptions due to heat waves and flooding. The number of livestock affected, including chickens, ducks, and pigs, totals 1.57 million. This figure surpasses the total damage during last year's monsoon season, which was 912,000. Approximately 1 million of the chickens died due to the recent heavy rain, with the retail price of broiler chickens (according to livestock distribution information from DABOM) recorded at 5,880 won (per kg), an increase of 2.3% compared to the previous month. Egg prices have soared to 6,984 won (based on 30 eggs), a 3.4% rise from the average.
The government is hastening damage assessments and recovery efforts to prevent instability in the supply of agricultural and livestock products. The Ministry of Agriculture, Food and Rural Affairs is continuously checking growth conditions and collaborating with the Rural Development Administration, local governments, and producer organizations to implement flood prevention measures, such as enhancing drains and strengthening greenhouses. They also plan to promptly provide disaster recovery funds and agricultural disaster insurance payments to affected farms.
The government will urgently inject 35 billion won into stabilizing food prices. Starting until the 6th of next month, it plans to offer discounts of up to 40% for key agricultural and livestock products, such as fruits and chicken, with a limit of 20,000 won per person per week.
Large supermarkets are also participating in the government's discount policy by implementing their additional discounts. Emart has added its promotions to the Ministry of Agriculture, Food and Rural Affairs' support discounts on seasonal fruits such as peaches and watermelons as well as pork, reducing prices by up to 36%. Lotte Mart is also running overlapping discount events for about 10 items, including fruits, vegetables, and grains.
Furthermore, the government's response to stabilize prices is expected to accelerate. Ku Yun-chul, the new Minister of Economy and Finance, stated after a press briefing immediately following his inauguration, "Due to flooding, we must stabilize prices, particularly the cost of living," and added, "Right now, stabilizing prices is our most critical short-term task."
Concerns have also been raised that the 'consumption coupon for recovering livelihoods', which began to be distributed today, might stimulate demand and temporarily drive up prices on dining tables in a situation where the supply of agricultural and livestock products has shrunk due to heavy rain. Seok Byeong-hoon, a professor of economics at Ewha Womans University, noted, "Seasonal demand for certain products, like watermelons, could put upward pressure on prices," and added, "If the seasonal factor of vacation times intersects with economic recession, consumption of specific items could increase and become a factor that stimulates prices."
In relation to this, Vice Minister Ku Yun-chul stated, "Overall, demand has decreased and inventories are piling up," while adding, "However, if demand concentrates on specific items, price increases may occur." He further stated, "In such cases, we are considering measures to expand supply and will strengthen monitoring to ensure there are no abrupt price increases due to consumption coupons while adjusting the shipment volume to manage the market stably."