Government to purchase 400,000 tons of public reserve rice this year; interim payment raised to 60,000 won per sack

South Korea's Ministry of Agriculture, Food and Rural Affairs announced plans to purchase 400,000 tons of rice for the public reserve this year. This volume represents a reduction of 30,000 tons compared to the 430,000 tons procured in the previous year. The decrease is partly attributed to the introduction of a new "supply and demand control rice" program, which will supply 100,000 tons of rice designated for processing. This measure aims to stabilize the rice market by isolating processing rice from the main consumption market and allowing its conversion to table rice during emergencies.

Rice farmers will receive an increased interim payment of 60,000 won per 40kg sack, a rise from the 40,000 won provided in 2024. This adjustment reflects recent trends in local rice prices and feedback from the field, according to the ministry. The final purchase price will be determined at the end of the year based on the average local rice price during the harvest season (October-December). Any difference between the interim payment and the final price will be settled later.

Furthermore, the government is introducing a pilot program this year to offer preferential support for eco-friendly rice. Farmers whose rice ranks in the top 30% for low protein content will receive a price premium of up to 5% points. The rice procured through the public reserve system is intended for distribution to vulnerable groups, including senior centers and free meal service organizations.

The government also outlined its plan for managing government-controlled rice inventory, projecting a stock of 710,000 tons by the end of October this year. By the end of the 2027 grain year, the aim is to maintain a reserve of approximately 840,000 tons, considering public reserve purchases, sales, and the return of loaned grain.