Do we need to save on rice too?.. First time this year rice price surpasses 60,000 won

[Financial News] For the first time this year, the retail price of rice (20㎏ standard) has surpassed 60,000 won, raising concerns about a 'rice price crisis'. The decrease in rice production last year, coupled with recent heavy rains causing flooding damage to rice paddies, suggests that the rise in rice prices may be prolonged. The food industry, which uses rice as a main ingredient, is also on alert, closely monitoring rice price trends, although they say there is no immediate problem due to stockpiles.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT) Agricultural Products Distribution Information (KAMIS) on the 23rd, the retail price of rice as of today is 60,151 won per 20㎏, up 0.72% from the previous day. This is 14.35% higher than the same period last year and 15.76% higher than the average year. This is the first time this year that the retail price of 20㎏ rice, which consumers mainly purchase, has exceeded 60,000 won.
Since March, rice prices have been higher than the previous year. As of February, the price of 2024 rice was 54,438 won, a 2.5% decrease from the previous year, but it rose by 4.5% to 55,237 won in March. In April, it rose to 54,831 won (7.9%), 56,178 won in May (4.1%), and 59,059 won in June (10.16%).
This is largely attributed to the decrease in 2024 rice production and government supply stabilization measures. According to the Korea Rural Economic Institute Agricultural Observation Center (KREI), the purchase volume of rice by local distribution companies from January to April was 157,000 tons, a decrease of 16,000 tons from the previous year. The purchase volume from January to February decreased by 21,000 tons compared to the previous year. From March to April, it increased by 5,000 tons compared to last year. 
Rice prices are expected to remain strong for the time being. This is primarily due to the decrease in inventory levels of local distribution companies. As of the end of April, rice inventory was 712,000 tons, a decrease of 210,000 tons from the previous year. In the case of the National Agricultural Cooperative Federation, it was 635,000 tons, a decrease of 20.4% from the previous year, and for private companies, it was 77,000 tons, a decrease of 39.6%.
Recent heavy rains have also expanded the damage to rice crops in the southern regions. According to the Ministry of Agriculture, Food and Rural Affairs, as of the 20th, 25,065 hectares of rice paddies have been flooded, accounting for 3.6% of the total rice cultivation area. As rice prices rise sharply, the food and beverage industry is also closely monitoring price trends. Although they have pre-purchased and stockpiled rice for processed products, there is no immediate shock from price increases, but there is a sentiment that countermeasures need to be prepared if the upward trend continues. 
A confectionery company official said, "We are making rice snacks using 100% domestic rice, and we are watching the situation as the recent rise in rice prices continues," adding, "If the upward trend continues, a shock is expected."
ssuccu@fnnews.com Kim Seoyeon Reporter