MOON Jiwoong

More than 230,000 won per 80 kg Hangama
Prices soared 25% year-on-year,
The purchase price of public reserve rice also soared

Stockpile and quarantine policy to prevent oversupply
Rather, it is a boomerang that raises rice prices

Rice prices in mountain areas reached record highs during the harvest season last year, putting upward pressure on prices at the beginning of the year. Rice has a significant impact on prices, accounting for the 55th of 458 items surveyed for consumer price statistics. Farmers’ organizations are in a mood to welcome the rise in rice prices, but agricultural experts criticize the government for leaving the structural imbalance in rice supply and demand while supporting short-term prices by injecting funds.

According to the National Data Agency and the Ministry of Agriculture, Food and Rural Affairs on the 4th, the average price of rice from the harvest season between October and December last year was 239,940 won per 80kg, the highest ever. It surged 25% year-on-year and is 16.2% higher than the average year.

As a result, the purchase price of public reserve rice (grade 1) that the government stockpiles in case of emergency reached an all-time high of 80,160 won per 40 kg. Last year, the government’s purchase price of public reserves was 63,510 won. The increase in the purchase price of stockpiles affects the increase in retail prices and at the same time puts a heavy burden on the government’s finances. Last year, the government’s budget for public reserves reached 1.16 trillion won, up 6% from 1.90 trillion won in 2024.

The Ministry of Agriculture and Forestry has repeatedly said that it will regain stability during the harvest season when the price of “short-term rice” rises from July to September, a hiatus before the new rice is released. A total of 55,000 tons of public stockpiles of rice were released in the form of “loans” between August and September as rice prices were rarely caught even when the harvest season was imminent. Companies that borrowed and sold government grain must return last year’s new song to the government by March this year.

Some of the government’s reserves have been released, but rice prices have not been caught. Last year, rice prices rose 15.9% year-on-year △ September △ 21.3% in October △ 18.6% in November △ 18.2% in December, fueling inflation, according to the data center. Rice prices rose 7.7% over the past year, the highest since 2021 (9.4%). When the price of rice in 2020 is 100, the price of rice last year was 108.07, the second-highest level ever since 1975, when data center statistics began to be compiled.

An agricultural expert said, “The soaring price of rice despite structural oversupply eventually leads to suspicion that the government is intervening in policy,” adding, “Rice prices tend to depend on the government’s policy will.”

In fact, it is pointed out that the government’s rice price measures are complacent despite high price increases. According to the Ministry of Agriculture and Forestry and the Data Agency, the excess rice production last year was around 130,000 tons. However, a total of 550,000 tons of supplies are not on the market, including 450,000 tons of public reserves and 100,000 tons of market isolation. In 2024, excess production was 56,000 tons, but 650,000 tons of rice, including 450,000 tons of stockpiles and 200,000 tons of market isolation, went into warehouses. Although it is said to be a measure to prevent rice prices from plummeting, there are many criticisms that the government is encouraging rice prices to rise by investing trillions of won in the government’s recent surge in rice prices.

As rice prices in mountainous areas have soared recently and the government’s public reserve rice prices have reached record highs, the Korea Federation of Successive Agricultural Managers issued a statement on the 29th of last month, saying, “The rebound in rice prices in mountainous areas has paid off with the efforts of the pan-agricultural sector led by the Ministry of Agriculture and Forestry.”

Some point out that rising rice prices could cover up the structural oversupply problem. If it is oversupply, it is normal for prices to fall, but as the government supports rice prices through rice stockpiling and quarantine, it will dampen the demand for farmers to switch to strategic materials such as wheat and soybeans. If the grain management law takes effect in August, the government’s obligation to quarantine rice will be strengthened, and rice prices are likely to continue to rise despite oversupply.

The response of small local restaurants is also of interest. As wholesale and retail prices are all rising significantly, restaurants are also moving to respond by raising rice prices. Otherwise, some stores are expected to give up some of the taste of rice instead of maintaining the price by mixing old songs and new songs.

An agricultural official said, “Whether the price of a bowl of rice goes up or uses cheap rice to reduce the taste of rice, consumers will eventually see the damage,” adding, “We need to think carefully about who will benefit from high rice prices.”

Published Date: January 5, 2026