S. Korea to dispose of 240,000 tons of rice from state warehouse

By Park Sae-jin Posted : November 2, 2016, 14:52 Updated : November 2, 2016, 14:52

Animal feed made of rice is on display at an exhibition. [Yonhap Photo]


South Korea promised Wednesday to dispose of 240,000 tons of rice from state warehouses in an attempt to cope with a glut and curb a market price drop that has worsened the agony of farmers.

State warehouses have already been packed with 1.7 million tons of rice due to bumper crops for years and have no room to store a new crop. The agriculture ministry said it would dispose of more rice as animal feed.

The average price of rice has fallen to 129,628 won (112 US dollars) per 80 kilograms (176.3 pounds), the lowest level in 21 years due to rich harvest and low consumption.

Farmers produced 4.32 million tons of rice last year, but this year's estimated consumption stands at 3.97 million tons, resulting in a surplus of 350,000 tons. South Korea should also import 409,000 tons of rice under this year's obligatory rice quota.

Annual rice consumption fell from 128.1 kg in 1985 to 62.9 kg in 2015, contributing to a surge in the rice inventory. Rice is still the main source of daily calories, but the consumption of barley, beans and other non-rice grains has increased, reflecting a dietary change especially among young people.

The government has already disposed of 100,000 tons of rice this year.
Regulatory disposing is inevitable for the government to keep an optimal level of its stock.

Aju News Park Sae-jin = swatchsjp@ajunews.com
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