Rice Sales Plunge by Double Digit Figure
By Kim Hyun-cheol
Staff Reporter
Sales of rice continued to slide in March and have been falling since November, the Korea Rural Economic Institute (KREI) said Thursday.
In a survey of 853 retailers nationwide, sales of rice fell 10.2 percent in March after declines of 14.3 percent in November and 42.8 percent in February.
In 2008, the rice consumption per person dropped to 75.8 kilograms, down 1.4 percent from 2007. The current decreasing rate of sales is expected to surpass the previous period.
The institute said the reasons for the decline are higher prices and reductions in purchases by big consumers such as restaurant and catering services, among others.
In the five-month period, rice sales in department stores and discount stores fell 19.9 percent and 33.4 percent respectively, meaning high quality brand rice also suffered.
"Consumers have also tended to buy smaller packages this year, reflecting their reduced consumption" the report said, attributing it to a change in dietary patterns.
The institute said that inventories are on the rise and prices are falling. In April, the total stock of rice was tallied at 1.18 million tons, up 40.6 percent from last year.
"While rice production rose 9.9 percent on year, sales in April plummeted 18.7 percent in rice-producing regions, thus increasing inventory," the KREI said.
Last month, 80 kilograms of rice sold at 159,744 won ($127.9), down 1.4 percent from last November.
The institute advised the government to reduce the rice stock in order to protect prices from falling further.
"It is necessary the government launch a promotion to encourage consumers to eat more rice," the institute said.
Overall rice consumption has been falling steadily over the years. In a recent study, urban households' spending on rice purchases dropped by over 60 percent between 1990 and 2005. Expenses for eating out surged over 1.5 times in the same period, with many of restaurants offering no rice or rice products.