SEOUL, Nov. 2 (Korea Bizwire) – The South Korean government said Wednesday that it will dispose of up to 240,000 tons of rice in government stockpiles, a move partly aimed at keeping prices up.
The amount compares with 100,000 tons disposed at the start of this year.
The rice to be disposed was produced in 2013, and will be used as animal feed, according to the Ministry of Agriculture, Food and Rural Affairs.
Currently, the government has 1.71 million tons of rice in its stockpile, more than twice the amount the government storages are designed to hold, the ministry said.
With a steady decline in consumption and years of better-than-expected harvests, the average price of rice has dipped to a 21-year low of 129,628 won (US$113) for a 80-kilogram sack, it added.
“The government may consider expanding the amount to be disposed as animal feed after carefully monitoring the country’s supply,” a ministry official said.