The government's acceptance of the revision to the grain management law, which was previously discarded due to a veto by Yoon Suk-yeol's administration, seems to be based on the judgment that it could resolve the controversy over the '14 trillion won budget burden.' The government explained that it has modified the grain management law revision to eliminate the mechanical purchase of surplus rice and enhance preemptive supply and demand control.
On the 31st, the Ministry of Agriculture, Food and Rural Affairs held a meeting regarding the grain management law and the revision of the law on distribution and price stabilization of agricultural and fishery products (Agricultural and Fishery Products Distribution and Price Stabilization Act) to explain its stance on rice supply adjustment and price stabilization measures. This meeting was a follow-up action after the bill passed the Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee of the National Assembly on the 29th.
The government stated regarding the grain management law revision, "We strengthened preemptive supply management policies and changed the structure to require the implementation of various stabilization measures through deliberation by the supply management committee in case of supply instability," adding that "there will be no mechanical excess purchasing." In particular, it emphasized that through measures such as increasing the strategic crop direct payment by 200 billion won, the previously concerned annual budget burden of 14 trillion won can be effectively resolved. However, the specific budget size will be determined through consultations with the budget authority in the future.
The government also emphasized that the revision to the grain management law clearly defines the post-response system in the law. Specifically, the grain supply management committee will review the criteria within the range of standards set by presidential decree, and the government must mandatorily implement the supply stabilization measures decided by the committee accordingly. The Ministry of Agriculture and Food explains that this structural change serves as a compromise to achieve the law's purpose of stabilizing the market and protecting farmers' income while leaving room for the government's policy response.
The government's judgment that the budget burden has decreased is also reflected in the revision of the Agricultural and Fishery Products Distribution and Price Stabilization Act. The revision institutionalizes preemptive supply control policies such as the establishment of agricultural product supply plans and the activation of contract transactions, and the introduction of a 'price stabilization system' to compensate for price drops is the key.
In particular, the method of determining the reference price has been changed to reflect 'production costs and supply and demand conditions' rather than the existing 'average price.' The government stated that as a result of this adjustment, the previously estimated annual budget burden of 1.19 trillion won at the time of the request for a reconsideration will be significantly reduced. The structure for determining target items, payment ratios, and differentiated support based on compliance will also be introduced through the Agricultural Products Price Stabilization Deliberation Committee. The government plans to advance research services for establishing operational systems for price stabilization on rice, vegetables, etc. from August 2025 to February 2026.
Regarding the disaster countermeasure law and disaster insurance law revisions, the government has maintained that the budget burden will be limited. In the case of the disaster countermeasure law, the average execution amount over the past five years is 156.1 billion won, and the budget for this year is 160 billion won.
A Ministry of Agriculture and Food official noted, "Additional financial demands are expected, but the specific budget will vary depending on the level of damage and the unit price of support by item," and added, "The disaster insurance law revision is expected to have little impact on the insurance premium support budget as it will exclude damage surcharge premiums only for damages above a certain level."
Meanwhile, the grain management law and the Agricultural and Fishery Products Distribution and Price Stabilization Act are among the four agricultural laws discarded due to vetoes by Yoon Suk-yeol's government, along with the agriculture disaster countermeasures law and the agriculture disaster insurance law revision. The agriculture disaster countermeasures law and the agriculture disaster insurance law revision were processed in the National Assembly plenary session on the 23rd. The Democratic Party plans to handle the grain management law and Agricultural and Fishery Products Distribution and Price Stabilization Act in the National Assembly plenary session on the 4th of next month.