To prevent instability in the rice supply and demand until the transfer of new-crop rice to market, the government will additionally provide 25,000 tons of government rice through lending. Following 30,000 tons last month, this second supply aims to ease concerns among producing-area distributors about shortages of raw rice.
On the 12th, the Ministry of Agriculture, Food and Rural Affairs said it decided to additionally supply government rice to resolve delays in harvesting early-maturing varieties and difficulties producing-area distributors face in securing raw rice. The ministry began releasing 30,000 tons of government rice on the 25th of last month, more than half of which sold within two weeks, and the remainder is expected to be exhausted within this month. Accordingly, an assessment emerged that some regions could face shortages of raw rice until mid-October, when shipments of new-crop rice (medium-late varieties) get into full swing.
This round of supply targets producing-area distributors that received government paddy purchase funding support last year and polishing mills that purchase at least 3,000 tons annually. Companies can apply for desired volumes on the NongHyup Economic Holdings website by the 15th, and allocations will be determined considering each firm's share of the previous year's rice sales. Assigned companies can take delivery of government rice from designated warehouses starting on the 19th.
Government rice cannot be resold as paddy. It must be sold as milled rice by Oct. 17. The ministry will concurrently crack down on mixed distribution of new and old rice and will also check whether sales obligations are fulfilled. Companies that received supply must return this year's new-crop rice to government warehouses by March next year. The return unit price will be finalized later, considering this year's average producing-area rice price, milling yield, and other factors.
The ministry held a council of producing-area distributors that day, chaired by Food Policy Deputy Minister Kim Jong-gu, to share the lending plan. Kim said, "It will help ease the raw rice supply difficulties of producing-area distributors this year and contribute to stabilizing rice prices," adding, "We will do our best to ensure stable supply and demand management that considers both farmers' incomes and consumers' burdens."