In a situation in which rice producing countries are all banned from exporting all at once for food security reasons, and rice production in the United States is plummeting due to severe climate change, efforts by the Korean retail industry to stabilize the price of rice, a staple food of Koreans, are required.
Countries that mainly export rice, such as Thailand, Vietnam, and India, have recently tightened their export rein for food security reasons. Accordingly, in addition to inflation, rice prices around the world are fluctuating.
This impact is clearly felt in the Korean community in Toronto. The price of California rice, mainly sold at Korean food stores, was $14.95 to $17.98 based on 15 pounds in April 2018 alone. However, due to inflation and other factors, it is currently being sold at a price of over $20.
A Korean distribution official said, “In addition to the impact of price hikes, the price of rice is rising because of the frequent wildfires and drought in California, which has significantly reduced rice arable land every year.”
Some are saying that it should be used as an alternative to US rice by increasing imports of Korean rice, which is currently in decline.
In order to raise the price of rice, which is falling due to overproduction, the government recently introduced a rice price stabilization measure that requires the government to purchase a total of 900,000 tons of rice.
The wholesale price of 20 kg of rice was 43,800 won ($46) as of the 30th of last month, down 21.7% from a year ago.
However, the industry opinion is that even if the price of rice in Korea has fallen sharply, it is still difficult to show great price competitiveness in Toronto, as sea freight costs, which soared during the corona virus, are holding back.
Choi Jin-woo, president of Pan Asia Foods, said on the 4th, “Even though the situation has improved, Korean rice prices are still burdensome at a time when sea freight rates have risen significantly compared to before the pandemic.”
An H Mart official also said, “As a result of inquiring with the Korean rice export related organization, we did not receive a specific answer, but it is difficult to feel a price drop in Toronto as the Korean government regulates export prices to protect farmhouses regardless of the Korean market situation. “However, it may affect the price of newly imported Korean rice to some extent.”