The South Korean government is considering releasing its emergency rice reserves into the market for the first time in four years, in a bid to prevent a sharp spike in prices.

The Ministry of Agriculture, Food and Rural Affairs announced on Wednesday that it has begun preparations for a public auction of government rice reserves.

According to Statistics Korea, the price of an 80 kilogram sack of rice was 199,668 won ($145.9) as of June 5, up 1.9 percent from ten days earlier.

The government views rice prices above 210,000 won per 80 kilogram as abnormal.

The last time the government released reserve rice into the market was in 2021.

The ministry emphasized that although prices remain relatively stable, this consideration is a proactive measure.

“Faster-than-expected price increases and some distribution companies struggling to secure paddy rice could pose risks,” said a ministry official. “It’s important to prepare countermeasures in advance.”

Private sector rice inventories as of May 30 stood at 540,000 tons, similar to the 570,000 tons in 2020, a year of balanced supply and demand.

In 2024, private inventory reached 775,000 tons, prompting the government to isolate 266,000 tons from the market due to oversupply concerns.

This move by the government is seen as a lesson learned from Japan’s experience.

Japan failed to release its rice reserves in a timely manner, leading to soaring prices.

In 2023, Japan’s rice production dropped by 90,000 tons compared to the previous year.

Coupled with the Meteorological Agency’s earthquake warnings, panic buying worsened the situation.

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