The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced today (Oct. 13) that this year's expected rice production is projected at approximately 3.46 million tons, which is expected to exceed demand by about 66,000 tons.

The projected surplus accounts for 1.9 percent of the total production.

MAFRA formulated the "2026 Rice Supply and Demand Stabilization Measures" following a review by the Grain Supply and Demand Management Committee the previous day.

Although a rice surplus is anticipated this year, its scale is not large, leading MAFRA to project that overall supply and demand will remain at a stable level.

Accordingly, MAFRA plans to adjust market supplies during the harvest season by retrieving government grain previously lent to the market.

To stabilize rice supply and demand, MAFRA lent 55,000 tons of government grain in 2024 and 100,000 tons this year. With some of this already returned, the volume to be retrieved as 2026 crop rice going forward is approximately 120,000 tons.

MAFRA plans to maximize the quarantine of this year's excess rice volume through the return of the lent government grain.

Retrieving the lent grain has the effect of reducing the amount of rice circulating in the market, allowing supply and demand to be managed with less budgetary burden compared to purchasing the excess volume separately.

MAFRA plans to maintain the plan to return the remaining 120,000 tons of lent grain while reviewing the return volume and timing by taking into account final rice production figures and carryover stock levels.

In addition, MAFRA will purchase 400,000 tons of 2026 public reserve rice during the harvest season from October to December.

The interim settlement price for public reserve rice has been set at 60,000 won per 40 kilograms of unhulled rice.

Following an increase from 30,000 won to 40,000 won in 2024, this year's additional hike of 20,000 won is a measure designed to ease the financial burden on farming households during the harvest season.

The government and the National Agricultural Cooperative Federation (Nonghyup) will provide a total of 3.9 trillion won in funds for purchasing unhulled rice.

The government will shoulder 1.4 trillion won, while Nonghyup will cover 2.5 trillion won.

Along with this, the government plans to manage newly introduced unhulled rice for supply and demand adjustment so that it is properly delivered to local distribution companies pre-contracted by farmers.

Furthermore, to establish order in rice distribution during the harvest season, authorities decided to step up inspections focusing on suppliers of government-lent grain for processing and distributors of imported rice intended for table consumption.

Through this, MAFRA intends to prevent processed rice from circulating in the commercial market and manage operations to prevent damage to farmers and consumers caused by the mixed distribution of new and old crops or rice from different production years.

Vice Minister of Agriculture, Food and Rural Affairs Kim Jong-koo emphasized, "These measures are the first rice harvest season supply and demand stabilization measures to be established following the implementation of the amended Grain Management Act this year. Through preemptive supply and demand adjustments, we have laid the foundation for optimal production, and with supportive conditions for off-season rice prices (prices of inventory rice before the new harvest hits the market), we will seek to stabilize supply and demand during the harvest season by quarantining the surplus volume to the maximum extent through the return of government-lent grain."

Vice Minister Kim added, "We plan to formulate phased measures this year as well, taking into account the possibility of fluctuations in final production figures. Based on final rice production data and other factors, we will promptly prepare additional supply and demand stabilization measures if necessary."