On January 23, the Ministry of Agriculture, Food and Rural Affairs (MAFRA) convened the first Rice Supply Stabilization Committee of 2024 to discuss measures for stabilizing the 2025 rice supply. The committee, composed of 17 representatives from MAFRA, the Ministry of Economy and Finance, producer, distributor, and consumer groups, as well as academia and research, gathered to share opinions. The committee operates under Article 16 of the Grain Management Act, focusing on establishing and monitoring key policies related to rice supply and demand. Growing concerns over rice oversupply and rising prices prompted the government to take action.
Based on the 2024 rice consumption survey, the 2025 rice crop was initially projected to have a surplus of 165,000 tons, but the latest data from the National Data Office on January 22 revised this to about 90,000 tons. This adjustment is largely due to a significant increase in rice for processing, which rose from 873,000 tons in 2024 to 932,000 tons in 2025. Excluding rice for alcohol production, processed rice consumption also increased from 645,000 tons to 715,000 tons. Meanwhile, the carryover stock for the current grain year is only 7,000 tons, much lower than last year (60,000 tons) and the average year (39,000 tons). Rice purchases by local distributors also dropped by 90,000 tons, resulting in private inventory being 120,000 tons lower than the previous year.
The committee expressed concerns that rising rice and paddy prices could burden consumers. In response, the government decided to defer the previously announced market isolation of 100,000 tons and to reconsider the pre-isolation of 45,000 tons based on future price trends. The return period for 55,000 tons of government rice loans will be extended by one year to March next year, easing the pressure on paddy procurement and mitigating price increases. Additionally, the government will increase the supply of rice for processing from 340,000 tons to a maximum of 400,000 tons and relax the mandatory purchase ratio for government rice purchase funds from 150% to 120%.
MAFRA plans to develop rice supply policies through discussions with producers, distributors, and consumers. Vice Minister Kim Jong-gu emphasized that the current price rise is not directly linked to farm income but could increase consumer costs, highlighting the need for flexible market isolation and expanded processing supply. The government will closely monitor market trends and introduce additional measures if necessary. These actions aim to stabilize the rice market quickly and minimize the burden on consumers.
This rice supply stabilization plan reflects a shift from simple oversupply management to a more nuanced approach that considers increased demand for processing rice and evolving market structures. The government’s flexible adjustment of market isolation, expansion of processing supply, and relaxation of purchase requirements demonstrate a strategic response to complex market challenges. These measures are likely to strengthen trust among producers, distributors, and consumers, setting a precedent for data-driven agricultural policy in Korea.