AreaRepublic of Korea

Commodity GroupRice

CommodityAll

Date06/04/2023

Policy CategoryProduction

Policy InstrumentCrop diversification, production support

DescriptionAnnounced that it targeted to convert 16 000 hectares of paddies to cultivation of soybeans, floury rice and forages during the 2023/24 season through the Strategic Crop Direct Payment Plan. To that end, it would offer KRW 1-4.3 million (USD 740-3 182) per hectare to farmers cultivating these crops on paddies, among other incentives. The initiative aims to stabilize the supply and demand of rice to keep producer prices above KRW 200 000 per 80 kg (USD 1 850 per tonne) and would come in addition to 21 000 other hectares of paddies targeted for conversion under other schemes during 2023/24. By 2027/28, its aim would be to reduce the country's total area under paddy to 618 000 hectares, down 109 000 hectares from the extension of 2022/23. Additional steps to this end would include supporting the development of high-quality rice and the creation of new demand for rice and rice-based products, including of floury rice and for exports.

NotesExchange rate as of 15 May 2023.