Fresh fruit prices have skyrocketed, and the government is adjusting prices to stabilize people’s livelihoods

Last year, apple and pear production plummeted due to abnormal weather, and prices soared ahead of the Lunar New Year
Fruit shortages may occur after Lunar New Year, imbalance between supply and demand of apples and pears becomes visible
The government has introduced special price adjustment measures for popular items that rise during the holidays

설 연휴를 앞두고 과일값이 치솟고 있다. 지난해 이상기후로 사과와 배 생산량이 확보되지 않아 수급에 문제가 생긴 데 따른 것이다. 이미 사과 한 봉지 가격은 2만5,000원을 넘기도 했다. 이에 정부는 올해 설 민생안정 대책으로 ‘서민 생활물가 안정’을 내세우며 농축수산물을 최대 60%까지 할인된 가격에 제공하기 위해 약 840억원의 예산을 투입하겠다고 밝혔다. 주요 성수품 공급 규모도 역대 최대 수준으로 늘릴 방침이다.

Golden apples and golden pears

According to agricultural product distribution information from the Korea Agro-Fisheries and Food Trade Corporation (aT) on the 16th, the average retail price of apples (Fuji, 10 pieces) on the 15th was 25,916 won and pears (reported, 10 pieces) were 31,442 won, the same as the previous year. It rose by 4.7% and 11.9%, respectively. The retail price of tangerines was 4,254 won as of the 15th, up 27.7% from a year ago. 

The reason why fruit prices are soaring is because production last year decreased compared to the previous year. Last spring, orchard farmers suffered damage due to cold weather and hail, and in the summer, the rainy season, typhoons, and heat waves increased damage from pests and diseases, leading to a sharp decline in harvests. Accordingly, apple production decreased by 30.3% and pears by 26.8% compared to last year.

As there were major disruptions in the supply of fruit sets ahead of the Lunar New Year holiday, the prices of fruit sets sold at major department stores and hypermarkets also rose significantly. As of the 15th, the price of the ‘Emotional Apple Set’ (4.2 kg) sold at Lotte Mart has increased by a whopping 60% from 49,900 won last year to 79,900 won this year, and E-mart’s ‘Apple VIP Set’ (3.6 kg) has been sold at the event. It jumped 49.3% from 32,060 won to 47,880 won. The price of E-Mart’s ‘Sugar Content Selected Pears’ (5 kg) also increased by about 20% from 29,880 won to 35,880 won based on the exercise price. As fruit prices soared and they were unable to make a profit, some department stores and large supermarkets are offering alternative fruit sets by mixing them with Shine Muscat, which has relatively stable prices and supply. However, as large quantities of fruit are expected to be sold out during the Lunar New Year holiday, apples and The imbalance between supply and demand for ships is likely to continue until the first half of this year.

Government invests 84 billion won to control inflation

It’s not just fruit that has seen prices rise ahead of the Lunar New Year. Egg consumption, which increases during the Lunar New Year, has already exceeded 7,000 won per plate (30 eggs), and the price per kg of first-grade Korean beef sirloin, which is popular as a holiday gift, rose by 1.4% from 97,410 won last year to 98,820 won. . In relation to this, a livestock industry official said, “If the price rise continues at this rate even though the Lunar New Year is still far away, the upward trend will continue for the time being.” He added, “The increase in prices in livestock production areas is widening.”

Accordingly, the government plans to take special measures to manage the average price of 16 major sacred items used during the Lunar New Year holiday at a lower level than last year. On the 16th, Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok held an emergency economic ministers’ meeting and a price-related ministers’ meeting and announced measures to stabilize people’s livelihoods for the Lunar New Year.

First, the government plans to invest 84 billion won, more than double last year’s 30 billion won, to support price discounts for Lunar New Year products to control price increases. In particular, it was decided to ship more than 120,000 tons of apples and pears, which is the average supply during the Lunar New Year period, in order to reduce the price increase rate, which is currently in the 20% range, to single digits. The government discount support rate for agricultural, livestock, and fishery products is also planned to be raised to 30% for the first time, allowing people to receive discounts of up to 60% (30% from the government, 30% from the industry itself).

Measures will also be implemented to revitalize traditional markets ahead of the Lunar New Year. Accordingly, the purchase limit per person for Onnuri gift certificates that can be used in traditional markets will be increased by 500,000 won per month starting from the 20th. The government announced that it will expand the total issuing volume of Onnuri gift certificates to 5 trillion won, an increase of 1 trillion won from the previous year (4 trillion won), and also increase the income tax deduction rate for card spending in traditional markets from 40% to 80% in the first half of this year.