South Korea managed to sell only 3 percent of the first batch of US rice for consumers on Wednesday due to buyers' fear of protests, putting into doubt whether the country will meet international trade obligations for the grain.
The state-run Korea Agro-Fisheries Trade Corporation sold only 40 tonnes of the 1,372 tonnes of US rice put up for auction. It would not disclose the bidders, buyers or location of the grain out of fear of sparking protests by farmers opposed to the imports.
"I gave up on taking part," said one wholesaler who asked not to be identified. "It was not worth it, especially when I was faced with the prospect of being beaten up by farmers."
South Korean farmers have killed themselves by drinking agricultural chemicals in protest against opening the domestic market to imported rice.
They have also set fires, destroyed vehicles and armed themselves with steel rods as they charged lines of riot police in rallies against the imports.
The little rice that was sold will not even make it to store shelves because supermarket chains and other major retailers stayed away from the auction in order to avoid being the subject of protests.
Only 16 of 41 potential bidders - mostly wholesalers or companies making processed foods - took part in the auction, said the Korea Agro-Fisheries Trade Corporation, which brought the US No 1 grade rice to the country.
"Bidders were scared off by the prospects of farmers' protests," said an official of the trade corporation. "We cannot reveal detailed information about the sale due to the sensitivity surrounding the issue of imported rice," the official said by telephone.
Dozens of farmers rallied outside the agency to protest the auction and used hammers to smash small containers of foreign rice and pictures of US President George Bush.
The US rice will likely end up in processed foods or at restaurants that will serve it to customers without letting them know they are eating the American grain, an agriculture ministry official said earlier this week.
The rice is at a warehouse or warehouses in the Seoul area under police guard, officials said.
Although South Korean rice is about four times more expensive than US rice on commodities markets, South Korean authorities will levy heavy taxes on imported US rice that virtually eliminates any cost advantage at the retail level.
South Korea's parliament approved a deal last year with rice exporters to open the market slightly wider for foreign imports and allow for the first direct sales to consumers.
In the deal with rice exporters, Seoul said it will incrementally increase its imports of foreign rice from 4.4 percent of total consumption in 2005 to 8 percent of total consumption by 2014.
Agriculture experts said it may be hard for South Korea to meet those obligations given the fear of buyers.
South Korea struck the deal in order to avoid more drastic measures to open its markets more quickly.
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