South Korean Govt. To Reduce Stockpiles

South Korean President Lee Myung-bak has instructed policymakers to step up measures to promote rice consumption, saying the government should help lower prices of rice products and reduce its stockpile by encouraging firms to develop more products made from rice.

South Korea's government purchases rice directly from farmers every year and keeps it for years in an effort to support their income. Farmers have diversified their income sources, but still make more than 50 % of their earnings from rice production.
The government also provides subsidies to rice producers to protect them from cheaper imports.

According to the Ministry of Food, Agriculture and Fisheries, the annual rice surplus amounts to 300,000 MT. The government currently has a stockpile of some 800,000 MT and spends some 600 billion won annually in keeping it.