"Overproduction of 56,000 Tons Expected for Newly Harvested Rice Again This Year Due to Oversupply"

Ministry of Agriculture, Food and Rural Affairs "Purchasing 200,000 tons to defend rice prices"

The Ministry of Agriculture, Food and Rural Affairs expects a surplus of 56,000 tons of rice this year and has decided to purchase 200,000 tons. They also plan to establish and implement a 'Fundamental Rice Industry Plan' within this month to prevent recurring issues of rice oversupply.

On the 15th, Statistics Korea projected this year's new rice production to be 3,585,000 tons, the lowest level since 2021. Even though rice production is at its lowest, considering the rapid decline in consumption, oversupply remains a concern this year as well.

Farmers harvesting crops (not directly related to the article). Yonhap News Agency

The government predicts a surplus of about 56,000 tons of new rice this year and has decided to purchase 200,000 tons, which is 144,000 tons more than the surplus. This is to defend against rice price drops by isolating the supply from the market. Separately, they also plan to purchase 360,000 tons of public stockpiled rice. Additionally, the government and the NongHyup will increase rice purchase funds by 900 billion KRW compared to last year, providing a total of 4.3 trillion KRW in support. The government’s contribution is 1.3 trillion KRW, and NongHyup’s contribution is 3 trillion KRW.

The Ministry of Agriculture, Food and Rural Affairs plans to strengthen guidance to ensure that local distribution companies receiving rice purchase funds buy the mandatory purchase volume within the year. Furthermore, they will continuously monitor market disruptions caused by low-price sales by local distribution companies.

The Ministry sees structural reform as necessary to prevent price drops in production areas caused by rice oversupply. In particular, they are considering allocating reduction quotas by region to reduce rice cultivation areas. Park Su-jin, Director of the Food Policy Bureau at the Ministry, stated at the Grain Supply Stability Committee held that day, "We plan to establish and implement a 'Fundamental Rice Industry Plan' within this month, which includes adjusting rice cultivation areas and transitioning to a quality-focused production system."