Friday, May 12, 2006

Discussion Article

http://joongangdaily.joins.com/200605/09/200605092241302639900090509051.html


Price cuts fail to move much imported rice

May 10, 2006 ㅡ Korea's Agriculture and Fisheries Marketing Corp. sold only a fraction of its imported rice on an online auction yesterday despite a cut in prices, the company said. The state-run corporation said it managed to sell just 86.6 tons, or 2 percent, of the total 4,394 tons of U.S. and Chinese rice on the block at its biweekly auction. Of the total sold, 54.6 tons was Chinese rice, with the rest being U.S. Calrose brand. It said the minimum bidding price for a 20-kilogram (44-pound) sack of rice fell to around 25,000-27,000 won ($27-29), down sharply from the 31,000-won tag set at the first three auctions that took place in April. "The fact that imported rice has been sold is an improvement over nothing being sold as in the previous two bids," an official said on condition of anonymity. The agriculture ministry said Monday that the minimum prices for some imported rice will be lowered from this week to boost sales. The ministry and the agricultural marketing corporation said they could not release the names of any bidders because of concerns such information could cause protests from local farming groups.A lack of consumer faith in the quality of the imported rice is suspected of having harmed sales. The second auction this week is expected to take place tomorrow. Seoul increased the number of online auctions per week from one to two as of this week as part of efforts to sell off the rice that is starting to pile up.

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