The South Korean government is implementing measures to isolate this year's excess rice production from the market and plans to purchase 400,000 tons of rice for public reserves. Additionally, it aims to alleviate the financial burden on farmers during the harvest season through increased support for rice purchase funds and interim settlement payments.
The Ministry of Agriculture, Food and Rural Affairs announced on October 12 that it finalized the 2026 rice supply stability measures during a meeting of the Rice Supply Stability Committee. Based on data from the National Statistical Office regarding rice cultivation area and expected production, this year's rice production is estimated at 3.46 million tons, exceeding the anticipated demand by 66,000 tons.
The ministry plans to isolate the excess supply from the market by returning government-borrowed rice. Of the 155,000 tons of government rice lent to farmers for the 2025-2026 period, approximately 120,000 tons remain to be returned, which will be reclaimed as 2026 rice. The government will adjust the timing and quantity of returns based on final production figures and carryover stocks.
Additionally, the government intends to purchase 400,000 tons of rice produced this year for public reserves between October and December. The interim settlement payment for farmers will increase from 40,000 won to 60,000 won per 40 kilograms. This payment provides farmers with upfront funds to help them manage their finances during the harvest season.
The government will also support rice purchase funds amounting to 3.9 trillion won, with 1.4 trillion won from the government and 2.5 trillion won from agricultural cooperatives, ensuring that farmers can smoothly market their rice during the harvest period.
This year, the newly introduced supply control rice will be limited to processing use, separating it from the market for table rice. The government plans to manage the shipment of supply control rice according to a pre-established purchase plan and will enhance oversight of the rice distribution process to prevent the mixing of processed rice with new and old stocks.
Kim Jong-gu, Deputy Minister of Agriculture, Food and Rural Affairs, stated, "This is a significant measure as it is the first rice harvest supply stability plan established since the revised Grain Management Act was enacted. We will develop measures gradually, considering the potential fluctuations in final production, and will quickly implement additional supply stability measures if necessary."
* This article has been translated by AI.
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