As the producer price of rice has topped 230,000 won per 80-kilogram sack and the upward trend continues, the government said it will review supplying government rice reserves to stabilize supply and demand.
The Ministry of Agriculture, Food and Rural Affairs said on the 10th, "The upward trend in producer rice prices is continuing, and recently the pace of increase has widened," adding, "We will swiftly review measures to supply government rice reserves." To that end, the ministry plans to conduct a demand survey of producer-area distributors this week, comprehensively check on-site inventory conditions, and then decide the supply volume.
According to the Ministry of Data and Statistics (MODS), as of the 5th of this month, the producer price of rice exceeded 230,000 won per 80 kilograms, up 0.4% from 10 days earlier. Producer rice prices hovered around 228,000 won in mid-Dec. last year with repeated ups and downs, then turned upward again at the start of this year, and the upward trend has continued in each period since Jan.
With the Lunar New Year holiday approaching, consumer prices are also adding to the burden. As of the day, the average retail price for 20 kilograms of rice was in the 62,000 won range, more than 16% higher than a year ago. It is about 15% more expensive compared with the average year.
Earlier last month, the agriculture ministry put forward a stabilization plan that, instead of deferring market segregation for 100,000 tons of 2025 rice, would supply up to an additional 60,000 tons of processing rice from government reserves. However, as producer-area prices continued to rise afterward, the ministry determined additional action was needed.
At the same time, the agriculture ministry emphasized that the rise in rice prices should be viewed within the broader flow of overall prices. Since 2005, when the government purchase system for rice was abolished and the grain management regime was revamped, through last year, the overall consumer price index rose about 57%, while rice prices increased about 46% over the same period.
An official at the agriculture ministry said, "We are closely monitoring market conditions so that the rise in rice prices does not become a prolonged burden on consumers," adding, "If necessary, we will use available tools, including supplying government rice reserves, to seek stability in supply and demand."