Gov`t to Purchase 70 Percent of Rice during Upcoming Harvesting Season

The government decided that the government, the National Agricultural Cooperative Federation (NACF), and the regional Rice Processing Complexes (RPC) would spend 3.9586 trillion won purchasing 13.25 million seom (one seom equals 144 kg), 13.8 percent (1.61 million seom) increase from the last year, in order to maintain the rice price of 158,000 won per rice sack (80 kg).

President Kim Dae-Jung visited Kangwon Provincial office yesterday and received a business report from Kim Jin-Sun, governor of the Kangwon Province. During his visit to the lake nursery in Dongmyun, Chuncheon City, he told the famers that ``a plan to sell about 6 million seom at the market is set up. Everything is prepared including funds and storehouse for purchase.``

Han Gap-Soo, Minister of Agriculture and Forestry, also announced yesterday `supply and demand of rice and the plan for the price stabilization`, in order to prevent the heavy fall of the rice price during the upcoming harvesting season.

According to the plan, the government will cut the release of government rice down to 1 million seom next year. The government will also stop releasing government rice, if rice prices from this year`s harvest until right before next year`s harvest come to less than 3 percent.

The government will buy 5.75 million seom (1.7386 trillion won), while ordering the NACF to purchase additional 2 million seom (570 billion won). The government also decided to aid 30 billion won, including the purchase funds, interests, and storage fees, from the national treasury.

The government also decided to aid additional 300 billion won for the purchase of rice plant and consignment fees in order to help the RPC to buy 5.5 million seom (1.65 trillion won). Of 5.5 million seom, 1 million seom will be purchased through the `consignment purchase`, of which amount is calculated depending on the sale price after farmers receive 70 percent of prepayment and consign the rice purchase. The lending rate of government loans to the RPC is to be lowered from 5 percent to 3 percent, and the government aid will increase from 1.3 billion won to 1.8 billion won per RPC.

Meanwhile, preparing for 2004 rice negotiation, Ministry of Agriculture and Forestry plans to announce the ` mid and long-term countermeasure for rice business` through the government and party consultation.

Kim Sang-Chul sckim007@donga.com