Korea is considering a move to suspend import duties on wheat and beans as part of efforts to contain inflationary pressure, a senior government official said Wednesday.
Agriculture Minister Suh Kyu-yong told an emergency policy meeting that a steady rise in international grain prices is fueling concerns that the country could suffer from "agflation" -- a phenomenon in which high food prices exert upward pressure on inflation.
"If grain prices continue to rise, import duties will be suspended which can push down the cost of imports," he said.
The official's announcement comes after global prices for various grain products have hit record highs in the past few weeks.
Seoul has been levying a tariff quota of just 1.8 percent on wheat imports in the first half of this year, and said no duties will be slapped on the grain until December. The country has maintained 5 percent rates for 320,000 tons of beans that are imported under a tariff rate quota system.
Because spikes in international grain prices start influencing overall consumer prices four to seven months in the future, recent price hikes could influence the market early next year.
Officials at the Ministry for Food, Agriculture, Forestry and Fisheries also said the government is considering a move to expand the type of staple grains that are part of the government emergency reserves.
At present, only rice is classified as an emergency food reserve, but this could be expanded to include wheat, beans and corn. (Yonhap)