Korea to reduce rice production area to address falling demand

An official from the agricultural ministry announces a new strategy regarding the rice production system, Sejong, Dec. 12. Yonhap

Korea's agricultural ministry said Thursday the country will make efforts to gradually reduce the size of rice paddies to address falling demand while adopting environmentally friendly cultivation methods.

The move comes as Koreans are consuming less rice every year due to changes in their diet, with the amount of rice consumed per person reaching 56.4 kilograms in 2023, down sharply from 61 kilograms in 2018, according to the Ministry of Agriculture and Rural Affairs.

"There are limits in stabilizing the supply and demand only with policy efforts. Thus, this is the moment to seek a self-sustainable industrial system that functions under market mechanisms," the ministry said in a statement.

While the total rice paddies currently span around 698,000 hectares, the government said it plans to reduce the area by 80,000 hectares next year.

Farms that reduce their rice paddies will receive incentives, including the government's purchase of produce for reserves.

The government will also allocate 244 billion won ($170 million) to provide subsidies to farms that cultivate strategic crops other than rice, including flour, beans and barley, up from 186.5 billion won spent this year.

On the other hand, the country will expand the size of rice paddies adopting environmentally friendly cultivation methods to 68,000 hectares by 2029, up from the estimated 35,000 hectares this year.

The ministry said the country will venture into various methods of utilizing rice in related products, including traditional liquor, offering tax incentives to producers.

To further boost rice consumption, the government will also work to increase exports of processed rice products to 180,000 tons by 2029, compared with 100,000 tons estimated for this year.

Korea will also offer 160,000 tons of rice in humanitarian aid to African and Asian countries in 2025, up from 110,000 tons this year, the ministry added. (Yonhap)