The Ministry of Agriculture, Food and Rural Affairs said on the 26th that the revised Grain Management Act, which manages the rice supply in advance, will take effect starting tomorrow.
Under the revised Grain Management Act, the government must establish an annual grain supply and demand plan and set in advance the appropriate rice paddy cultivation area and the cultivation area for alternative paddy-field crops such as soybeans. The scope of the plan's coverage will also expand from government-managed grains to all grains. A new legal basis was also created to support farmers who grow crops other than rice in paddy fields.
A grain supply and demand management committee will also be established. The committee will deliberate on the overall matters, including the grain supply and demand plan, the government grain supply and demand plan, and measures for the rice harvest season. The committee will consist of up to 15 members and will include five or more producers, as well as distribution industry representatives, consumers, experts, and government officials.
If rice is overproduced or prices fall, the government must draw up stabilization measures, including purchases. The criteria for supply and demand instability are when excess production occurs within 3% to 5% of total production, or when the price during the previous lean season falls 5% to 8% below the average year.
An "agricultural product price stabilization system," which compensates the difference when agricultural prices fall below a reference price, will also be introduced. The Ministry of Agriculture, Food and Rural Affairs plans to review the items covered by the price stabilization system and the differential payment ratios through the Agricultural Product Price Stabilization Review Committee in early next month.