South Korea will reduce tariffs on imported chili peppers in a bid to control a surge in consumer prices sparked by poor domestic output, the government said Wednesday.
Under the move to go into effect within the month, a 10 percent tariff will be imposed on 8,200 tons of chili pepper imports, compared with the current 50 percent tariff rate, the Ministry of Strategy and Finance said.
It also calls for expanding preferential tariff quotas on live chicks from 1 million birds at present to 1.5 million birds. The increase could help push up domestic egg production and counter the massive culling of chickens that took place earlier in the year after the country was hit hard by bird flu outbreaks.
The latest measure comes as South Korea’s consumer prices soared to a three year-high of 5.3 percent in August, raising concerns that inflationary pressure is building up despite the government’s anti-inflation efforts. Inflationary pressure is being fueled in part by high farm product costs.
The ministry, in addition, said it will cut import duties on various root vegetables that are used as animal feed, from the current 3 percent to zero percent, while raising the total amount of products that can benefit from the move to 860,000 tons from 810,000 tons at present.
The ministry also said that it will apply low tariff rates on potatoes and seed pigs to counter the expected drop in local production triggered by bad weather and heavy losses of livestock caused by the foot-and-mouth disease outbreak that hit the country at the same time as the bird flu.
It said 4,500 tons of potatoes will be brought into the country under a low duty rate scheme, with minimum market access numbers for seed pigs marked up to 3,000 animals.
South Korea’s quarantine authorities said they culled and buried about 3.41 million livestock after the first FMD case was reported in late November of last year. Most of the animals destroyed were pigs.
