South Korea's excess rice production this year is projected at about 66,000 tons, down 60% from a year earlier. The government plans to reclaim 120,000 tons of rice loaned to the private sector in the form of newly harvested grain, cutting the amount available on the market. It will also buy 400,000 tons for public stockpiles to stabilize prices during the harvest season.
The Ministry of Agriculture, Food and Rural Affairs announced the measures, part of its rice supply and demand stabilization plan for the 2026 crop, on the 13th. Rice output this year is estimated at about 3.46 million tons. Excess production, after accounting for demand, was put at 1.9% of the total. That is roughly 60% below the 165,000 tons the government projected a year earlier.
A distinctive feature this year is that supply was managed from the planting stage. The government introduced rice varieties designated for supply control for the first time, curbing production of table rice in advance. Such grain is restricted to processing uses only.
During the harvest season, the government will further reduce market supply by recovering state-held grain. It loaned a total of 155,000 tons to the private sector — 55,000 tons last year and 100,000 tons this year. About 120,000 tons remain to be returned. Taking repayment in rice harvested this year would remove an equivalent volume from the market. The government plans to adjust the size and timing of the repayments based on final output and carryover stocks.
Alongside the supply measures, support for farmers during the harvest will expand. The government will purchase 400,000 tons for public stockpiles from this month through December. The interim payment made upfront to farmers will rise to 60,000 won per 40 kilograms of unmilled rice from 40,000 won. It is the second increase in two years, following a rise from 30,000 won to 40,000 won in 2024.
Funding will also be provided to ensure smooth purchases of unmilled rice in production areas. The government will put up 1.4 trillion won ($980 million) and the National Agricultural Cooperative Federation 2.5 trillion won ($1.75 billion). The money is intended to help farmers ship their crop on schedule during the harvest.
Oversight of possible irregularities in rice distribution will be tightened. Distribution of state-held rice designated for processing is a main target of the inspections. The government will focus on preventing processing-grade rice from reaching the retail market and on cracking down on the sale of new and old crops mixed together.
The government said it would consider additional stabilization steps depending on final output. "With market conditions favorable, we will isolate as much of the surplus as possible by having loaned state grain returned, and work to stabilize supply and demand during the rice harvest," Vice Minister Kim Jong-koo said.
