For the first time, the government has decided to lend its rice reserves to the private sector as rice prices continue to soar.
 
The Ministry of Agriculture, Food and Rural Affairs announced on Monday that it will lend government stockpiles to local distributors by the end of August with the aim of getting them back as new rice is harvested this year, pointing out that surging prices are due to reduced market supply.
 
It plans to supply 30-thousand tons of government rice.
 
The ministry explained that instead of holding public sales as in the past, the government will lend rice harvested in 2024 and receive rice harvested in 2025 in return as part of its new strategy.
 
However, it is projected that the 30-thousand tons to be supplied will fall short of what’s needed by the end of the year and may cut into rice production for the 2025 harvest.

As of August, the retail price for 20 kilograms of rice stood at an average of 58-thousand won or about 42 U.S. dollars, more than 10 percent higher than usual and nearing the 60-thousand won price resistance threshold.