The government will implement measures to stabilize rice prices if production exceeds certain levels or prices decline. Legal grounds have been established to support farmers who grow non-rice crops and to manage appropriate rice cultivation areas in advance.
The Ministry of Agriculture, Food and Rural Affairs announced on August 26 that the revised Grain Management Act and its subordinate regulations will take effect on August 27. The act was amended on August 26 of last year and underwent a year-long preparation period.
The revised law mandates the government to establish and implement supply and demand stabilization measures when rice production exceeds certain thresholds or when price declines are anticipated. These measures may include the purchase of excess quantities depending on market conditions.
However, the government will not automatically purchase excess production without conditions. A Grain Supply Management Committee, consisting of producers, distributors, consumers, and experts, will review the supply situation and recommend appropriate measures for the government to implement.
To manage supply proactively rather than reactively, the government is required to establish an annual grain supply plan that includes appropriate rice cultivation areas and non-rice crop areas.
The scope of the supply plan will expand from previously government-managed grains to all grains. Prior to the law's implementation, the government announced the '2026 Grain Supply Plan' in February, detailing appropriate rice cultivation areas.
New provisions have also been established to support farmers who grow non-rice crops instead of rice. This measure aims to reduce rice production while expanding the cultivation of strategic crops such as wheat and soybeans. The budget for the strategic crop direct payment program has increased from 244 billion won last year to 419.6 billion won this year.
The newly formed Grain Supply Management Committee will be chaired by the Deputy Minister of Agriculture, Food and Rural Affairs and will consist of up to 15 members. At least one-third of the appointed members will represent producer organizations related to grain supply and demand.
The committee will review the grain supply plan, government grain supply plans, and harvest season measures, thereby enhancing the participation of industry stakeholders in the policy-making process by transitioning the existing Grain Supply Stabilization Committee into a statutory committee.
Additionally, legal grounds have been established to supply government-managed grains at discounted prices to low-income households and those in need.
Jung Hye-ryun, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, “The implementation of the Grain Management Act has strengthened the system for preventing rice supply issues in advance. In the future, we plan to promote a trust-based grain supply policy through the Grain Supply Management Committee, bringing together producers, distributors, and consumers.”
* This article has been translated by AI.
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