The government has confirmed that it will purchase 400,000 tons of public rice reserves this year. The interim settlement price for the rice will be set at 60,000 won per 40-kilogram bag, an increase of 20,000 won from previous levels.
The Ministry of Agriculture, Food and Rural Affairs announced on August 25 that this decision was finalized during a Cabinet meeting as part of the '2026 Public Rice Reserve Implementation Plan and 2027 Government-Managed Grain Supply Plan.'
Of the 400,000 tons of public rice reserves, 35,000 tons will consist of powdered rice. The final purchase price will be determined at the end of the year based on the average market price of rice during the harvest season (October to December), converted to the price of paddy rice. The interim settlement price has been frozen at 30,000 won since 2017, increased to 40,000 won in 2024, and now reflects a further increase of 20,000 won based on market trends.
The government will also introduce policies to encourage the production of high-quality rice. A pilot program will support environmentally friendly rice varieties with a 'low-protein eco-friendly rice incentive.' Farmers in the top 30% with low protein content will receive a 5% price incentive on their purchase price.
The varieties eligible for public rice reserves will be limited to two pre-designated types in each city and county, excluding high-yield varieties such as Heukmi and Saenuri. Farmers who ship non-designated varieties will face restrictions on public rice shipments for the next five years.
The government anticipates that the rice stock under government management will reach 710,000 tons by the end of this year. Considering public rice purchases, sales, and loan repayments, the government plans to manage the grain stock at around 840,000 tons by the end of the 2027 grain year.
Jung Hye-ryeon, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "We will ensure stable food supply for the public by effectively managing public rice reserves and government-managed grain supply. This year, we aim to help stabilize farm management by increasing the interim settlement price and further strengthen the high-quality rice production system through low-protein rice incentives."
The Ministry of Agriculture, Food and Rural Affairs announced on August 25 that this decision was finalized during a Cabinet meeting as part of the '2026 Public Rice Reserve Implementation Plan and 2027 Government-Managed Grain Supply Plan.'
Of the 400,000 tons of public rice reserves, 35,000 tons will consist of powdered rice. The final purchase price will be determined at the end of the year based on the average market price of rice during the harvest season (October to December), converted to the price of paddy rice. The interim settlement price has been frozen at 30,000 won since 2017, increased to 40,000 won in 2024, and now reflects a further increase of 20,000 won based on market trends.
The government will also introduce policies to encourage the production of high-quality rice. A pilot program will support environmentally friendly rice varieties with a 'low-protein eco-friendly rice incentive.' Farmers in the top 30% with low protein content will receive a 5% price incentive on their purchase price.
The varieties eligible for public rice reserves will be limited to two pre-designated types in each city and county, excluding high-yield varieties such as Heukmi and Saenuri. Farmers who ship non-designated varieties will face restrictions on public rice shipments for the next five years.
The government anticipates that the rice stock under government management will reach 710,000 tons by the end of this year. Considering public rice purchases, sales, and loan repayments, the government plans to manage the grain stock at around 840,000 tons by the end of the 2027 grain year.
Jung Hye-ryeon, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, stated, "We will ensure stable food supply for the public by effectively managing public rice reserves and government-managed grain supply. This year, we aim to help stabilize farm management by increasing the interim settlement price and further strengthen the high-quality rice production system through low-protein rice incentives."
* This article has been translated by AI.
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