By Kim Hyun-cheol
Staff Reporter

The government will buy up to 100,000 tons of rice more than initially planned this year to stabilize crop prices.

This year's production is estimated to be 4.7 million tons, slightly down from 4.8 million tons last year, the Ministry of Food, Agriculture, Forestry and Fisheries said Tuesday.

A decline in rice paddies is mainly attributable to the contraction, but the amount of crops is still above the average of 4.6 million tons over the last few years, it said. The overall land size for rice paddies shrank 1.2 percent from a year ago to 924,000 hectares.

As unveiled in last year's price-stabilization program, the rice surplus will be purchased by the Federation of Agricultural Cooperatives, or Nonghyup, and added to the state reserve.

The buying will begin as early as the middle of next month after the total production amount is confirmed, the ministry said.

The purchased rice will not be released onto the market unless rice prices rise to a certain level, it added.

Such segregation will contribute to raising rice prices by 2,000 won ($1.7) per 80-kilogram bag, it predicted.

A recent study by the Korea Rural Economic Institute showed that harvest-season prices of the grain are likely to be set between 147,000 and 150,000 won per 80 kilograms, but they will go up to 152,000 won after the government-led purchase.

About 100,000 tons of rice now in state warehouses will be used to make rice liquor, it said.

As of October, Korea has 820,000 tons of rice in reserves, with 690,000 tons in state warehouses.

hckim@koreatimes.co.kr