Dr. Jeongbin Im
Department of Agricultural Economics and Rural Development
College of Agricultural and Life Science
Seoul National University
The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that the government will purchase 370,000 tons of public holding rice (12.85 million bags / 40kg) produced in 2013 from September 23 to December 31. This public stocking policy which is introduced in 2005 is for securing food security and stabilizing the price of rice during the harvest seasons,
The government purchase price of public holding rice will be finally determined in January 2014 considering the producer price of rice in the harvest period. However some amount will be paid in advance by rice grade in the form of prepayment. The prepayment refers to an advance payment during the purchase of a farm's capital requirements during the harvest period, and the balance will be settled after the final purchase price is determined.
The prepayment for the current year is 90% of KRW(￦)61,321, the average August producer price of rice (KRW(￦)176,903) converted into 40kg rice bags, which increased by KRW(￦)6,000 (12.2%) compared to last year. The purchase price of last year was also determined at 80% to 95% of the August producer price of rice.
Date submitted: October 5, 2013
Reviewed, edited and uploaded: October 8, 2013