Kim Pledges to Raise Rice Farmers' Subsidy

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Kim Pledges to Raise Rice Farmers' Subsidy

President Kim Dae-jung said Wednesday that he would increase direct subsidies to rice farmers next year to more than 400,000 won ($300) per hectare. Earlier this year, the government had asked the National Assembly to increase next year's rice subsidies to between 250,000 and 350,000 won.

On a visit to Naju, South Jeolla province, Mr. Kim said he regretted that rice farmers were suffering from a plunge in rice prices despite a record harvest. "Since the decrease in rice price has become greater than the estimate used when the government submitted its request to the parliament, I hope the subsidies will go up to more than 400,000 won," the president said.

This particular form of subsidy based on acreage farmed is permitted by the World Trade Organization, despite its general stance against subsidies and other trade barriers, so long as market prices are left free.

A Blue House official said that if the subsidies go up to between 400,000 and 450,000 won, rice farmers will get 2,540 won more for each 40 kilograms of rice.

President Kim also pointed out that the price of farmland had decreased by 3 percent since the end of last year. He said he would lower the interest charged when purchasing farmland from 4.5 percent to 3 percent and more than double monetary support to rice farmers for land purchases, from 132 billion won to 280 billion won. Mr. Kim also said he might consider lowering the interest rate further if necessary.

Meanwhile, after the National Election Commission ruled that supporting the price of rice did not violate the law on election campaigning, as long as the local government head did not promote himself simultaneously, local governments around the country have begun to purchase additional rice or provide monetary support to farmers.

The North Jeolla provincial government will provide 20 billion won in loans to agricultural cooperatives and rice-processing centers at 3 percent interest. It will also buy 10,000 extra tons of rice.

South Gyeongsang province will give out 2.5 billion won to rice farmers for packaging. Goseong County and the city of Tongyeong in the province will provide 300 million won and 5.5 million won respectively to farmers.

Some local governments are hesitant to provide subsidies, fearing that they could potentially violate the rules of the World Trade Organization. Officials of these governments said the Agriculture Ministry had not yet given them clear guidance.

by Kim Jin-kook

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