Additional 50,000 Tons of Government Rice Supplied to Processed Rice Food Industry... "Supply and Demand to Be Continuously Monitored"

Securing Raw Rice for Processed Rice Foods and Supporting Export Expansion
"Rice Distributor Discount Support" to Be Increased to 5,000 Won per 20kg

The government has decided to supply an additional 50,000 tons of government rice to processed rice food companies facing difficulties in sourcing raw materials.

The Ministry of Agriculture, Food and Rural Affairs announced on September 5 that it would provide additional government-managed rice for processing, aiming to swiftly resolve concerns over disruptions in the production and export of processed rice products caused by a shortage of raw rice among processed rice food companies.

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An official from the Ministry of Agriculture, Food and Rural Affairs explained, "With the recent rise in rice prices, the processed rice food industry, which mainly consists of small and medium-sized enterprises, has been struggling to purchase rice on the market. Export companies, in particular, have voiced concerns about weakened competitiveness in overseas markets due to disruptions in export production volumes. The ministry has quickly decided on the additional supply to alleviate these concerns early and to stabilize management for processed rice food companies ahead of the Chuseok peak season, when demand for processed rice foods increases."

The ministry plans to ensure sufficient supply by reflecting actual demand within the 50,000-ton range requested by the processed rice food industry. To this end, it will maintain continuous communication with the industry to swiftly provide the necessary raw rice by the end of the year and will continue to monitor the supply and demand situation for rice for processing.

The ministry expects that this measure will promptly resolve the shortage of raw rice for processed rice food companies amid the current market shortage, thereby contributing to stable production of processed rice foods through the end of the year. This is anticipated to expand domestic rice consumption and further boost the steadily increasing exports of processed rice foods driven by the K-food trend.

In addition, the ministry has been collaborating with major supermarkets since August 1 to ease the burden on consumers caused by rising rice prices, launching a promotion that discounts 3,000 won per 20kg of rice. In light of the recent price increase, the discount will be raised to 5,000 won starting September 11.

The ministry also plans to continuously monitor the effects of the 30,000-ton government rice loan and trends in the rice market at production sites, and will consider additional measures if necessary.

Byun Sangmoon, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "This additional supply is expected to not only support the smooth production activities of processed rice food companies but also have a positive effect on rice supply and demand. The government will continue to stably supply rice for processing to boost exports and stabilize prices, while also working with the processed rice food industry to promote the use of new private rice varieties as the scale of the rice processing industry expands."