Tariffs slashed for pork, mackerel, sugar amid rising prices

Packages of pork are on display at a discount supermarket in Seoul. [NEWS1]

Pork, mackerel and sugar are some of the items subject to zero import tariffs starting June as the government tries to ease pressure on consumers amid rising prices.

Other items to receive such treatment include raw sugar, palm oil, crude alcohol made from fermented grain and dried distillers grains with solubles.

Tariffs on 45,000 tons of pork will remain at zero until Dec. 31, 2023.

Pork prices have been on the rise as increased outdoor activities led to a spike in demand.

Tariffs on 10,000 tons of mackerel will be cut to zero from 10 percent until Aug. 31 amid lower supplies of the fish.

“The industry projects that mackerel imports from Norway will return to normal, following falling production there,” the ministry said.

To reduce the impact on local mackerel producers, the tariff exemption will last only until the end of August.

In April, the local consumer price of pork rose 4.2 percent and mackerel 13.5 percent.

Sugar and raw sugar also fall under the category as global sugar prices have risen due to tight global supply.

Tariffs on sugar and raw sugar will remain zero until the end of this year.

Higher temperatures and heavy rains have led to a decrease in production, while an increase in energy prices due to the war in Ukraine has led to using sugarcane to produce ethanol instead of sugar.

India, the largest global sugar supplier, is limiting additional exports due to a decrease in domestic production, and Europe prohibited the use of neonicotinoids on sugar beet crops, as research indicated that the pesticide is lethal for pollinators such as bees.

A steep rise in the price of sugar is pushing up the prices of a wide range of products, including snacks, ice cream and beverages in Korea.

Sugar prices jumped by 30.6 percent to $709 per ton in May while those of raw sugar rose by 34.4 percent to $571 per ton, according to the Finance Ministry.

The ministry will also extend the lifting of tariff on dried distillers grains with solubles or DDGS, a source for making soju.
“The prices of DDGS keep rising as they are made from sugarcane, the price of which is skyrocketing alongside sugar prices,” the ministry said.

Palm oil was newly included in the category benefiting from zero tariffs. The need to eliminate the tariff was raised since palm oil is widely used for producing mixed feed for animals.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]