Government to purchase 450,000 tons of rice to stabilize market prices

The Agriculture Ministry said Monday the government will purchase a total of 450,000 tons of rice for its reserves to stabilize market prices and address an oversupply of the grain.

A rice field in Korea [YONHAP]

The Agriculture Ministry said Monday the government will purchase a total of 450,000 tons of rice for its reserves to stabilize market prices and address an oversupply of the grain.

Under the plan passed during a Cabinet meeting, the government will purchase 400,000 tons of rice harvested this year, along with an additional batch of 50,000 tons from the previous year, according to the Ministry of Agriculture, Food and Rural Affairs.

The government will purchase unprocessed rice from August to November and packaged rice from October to December.

The price will be determined at the end of this year, with the government providing an interim payment of 30,000 won ($22) per 40-kilogram (88-pound) bag.

Korea has been struggling to cope with an oversupply of rice, a key staple food for Koreans, amid a steady decline in its consumption due to changes in people's diets and eating habits.

The purchased rice will be used for various purposes, including military meals and global humanitarian projects.

The rice will also be utilized for the Asean Plus Three Emergency Rice Reserve, which is designed to safeguard food security in the event of emergencies, such as floods and droughts.

Yonhap