An official checks the quality of preserved rice at a rice processing cooperative in Yongin, 40 kilometers south of Seoul, on April 4, 2023. (Yonhap)
SEOUL, May 24 (Korea Bizwire) — The Ministry of Agriculture, Food and Rural Affairs announced on Tuesday its intention to dispose of surplus government grain (rice) by the end of this year, aiming to reduce the excess stockpile.
The grain will be utilized for alcohol production and animal feed.
Last year, the ministry purchased a record-breaking 770,000 tons of rice to prevent a plunge in rice prices during the harvest season.
Consequently, the government’s grain stockpile increased to 1.7 million tons last month, more than double the appropriate inventory level.
In light of the growing burden of stockpiling, the ministry has decided to dispose of 140,000 tons of surplus grain for alcohol production and animal feed.
Including this special disposal, this year’s government grain sales will increase from the initial 780,000 tons to 920,000 tons.
“Apart from saving approximately 11.5 billion won (US$8.71 million) in storage costs, this special disposal will also reduce foreign currency expenditure by 61.8 billion won by replacing imported raw materials used in animal feed and alcohol production,” said a ministry official.
The ministry plans to commence the special disposal in July after discussing the details with other relevant agencies.
J. S. Shin (js_shin@koreabizwire.com)
