Rice Price Surpasses 60,000 Won per 20kg... Government to Supply Additional 25,000 Tons

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The price of rice has surpassed 60,000 won per 20kg, rising nearly 20% compared to the previous year. With prices remaining more than 15% higher than the average year, the government has decided to supply an additional 25,000 tons of government rice reserves to stabilize the market.

On September 12, the Ministry of Agriculture, Food and Rural Affairs announced, "We will supply an additional 25,000 tons of government rice reserves (milled rice) to help rice distributors secure raw materials and to stabilize the rice supply and demand."

Previously, the Ministry began supplying 30,000 tons of government rice reserves on August 25, and more than half of that amount was sold within two weeks. As the remaining volume is also expected to be depleted within two weeks, it has been analyzed that some regions will inevitably face a shortage of raw rice until the new crop (mid- and late-maturing varieties) is shipped in earnest in mid-October. In particular, this year, frequent rains during the early-maturing rice harvest delayed shipments, leading to a surge in demand for old-crop rice, which is cited as a reason for the additional supply.

The price of rice is rising steeply. According to price information from the Korea Agro-Fisheries & Food Trade Corporation (aT), as of September 11, the retail price for 20kg of rice at the standard grade was 61,093 won, about 19% higher than the same period last year (51,322 won). Compared to the average price (52,962 won), it is more than 15% higher. Even over the past week, prices have consistently remained above 60,000 won, showing a slight upward trend.

The additional supply is targeted at rice distributors who received government rice purchase funding in 2024 and rice milling companies that purchase more than 3,000 tons annually. Companies wishing to receive the supply must apply through the notice on the NongHyup Economic Holdings website by September 15, and the volume will be allocated based on the proportion of sales in the previous year. Companies allocated supply can pick up their rice at designated warehouses starting September 19.

Government rice reserves cannot be resold as unmilled rice and must be processed into milled rice and sold by October 17. The Ministry will supervise whether sales are completed and will also crack down on the mixing of new and old rice in distribution. In addition, companies that receive the supply must return 2025 new crop rice to government warehouses by March next year, and the quantity to be returned will be finalized later, reflecting the average producer price in August 2025, the harvest season price, and milling yield, among other factors.

On this day, Kim Jonggu, Director General for Food Policy at the Ministry, presided over a meeting with stakeholders such as the NongHyup Rice Processing Complex (RPC) Council to share the supply plan and urged active participation from rice distributors.

Director Kim emphasized, "This additional supply will help alleviate difficulties in securing raw rice, contribute to stabilizing rice prices during the 2025 harvest season, and help maintain farmers' incomes. The government will manage rice prices in a stable manner that benefits both farmers and consumers."

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