INCREASE IN RICE PRICES

[Anchor Lead]

Soaring prices of farm and livestock products are already a burden for households. On top of that, rice prices are also surging. These higher prices are driving more farmers to plant and cultivate rice. As a result, the size of rice farming fields is expected to increase for the first time in 20 years.

[Pkg]

A 20 kilogram sack of rice sells for over 60,000 won at a supermarket. It is up some 20 percent from a year ago.

[Soundbite] Yoon Hye-jeong(Daejeon) : "We rarely go out due to the pandemic. So we consume a large amount of rice at home. It is quite burdensome. I hope rice prices will drop a little."

Rice prices are climbing, as production plunged last year due to a longer-than-usual rainy season accompanied with frequent typhoons. In order to rein in these soaring prices, the government released 210,000 tons of rice to the market between January and April, bringing prices down slightly. But the current upward swing is forecast to continue until the harvest season this fall. Rice prices are forecast to remain strong, as more and more people cook and eat at home. With this outlook, more farmers are deciding to grow rice. According to a study by the Korea Rural Economic Institute, the size of rice farming areas stands at 729,000 hectares this year. It is up 0.3 percent from last year. The extent of rice farming fields has jumped for the first time since 2001, after dropping some two percent annually.

[Soundbite] Kang Wan-kyo(Sejong farmer) : "I expect rice prices will also increase this year. More farmers are cultivating rice."

Some experts are cautioning the switch to rice farming. This is because oversupply can lead to a fall in prices if rice farming areas increase too much.