[News Today] Rice lending program for private sector

[LEAD]
Everything seems to be expensive these days, and even rice has passed the 60,000-won mark for 20 kilograms, a level often seen as the consumer "breaking point."

To rein in the surge, the government will, for the first time, lend last year's rice to private mills, to be repaid with this year's harvest.

[REPORT]
Rice from various regions across the nation.

Although their prices are different depending on the production region and variety, rice usually costs more than 60,000 won or over 43 U.S. dollars for 20 kilograms.

The price of rice is rising sharply, prompting the government to step in with discount support.

Goo Sun-hoe / Goyang resident
When did it jump like this? It's almost 40,000 won for 10 kilograms. That's 70,000 won for 20 kilograms. It's steep.

The consumer price of rice is 58,000 won or little under 42 dollars for 20 kilograms on average. It is ten percent higher than it used to be in previous years.

This is because last year, the government purchased more than 260,000 tons of rice to prop up its declining price and the production was smaller than expected.

The government has decided to lend rice to the private sector for the first time.

Under the scheme, the government lends last year's rice to private milling companies and receives back rice harvested this year. The plan aims to curb the price hike and adjust the supply of this year's newly produced rice.

Song Mi-ryung / Minister of Agriculture, Food and Rural Affairs
We'll have new rice this year. Repay with it next year. It'll be a win-win solution for producers and consumers.

The first-ever government plan to lend rice.

This is a litmus test of an attempt to find a balance between supply and demand for farmers and consumers.