Agriculture ministry sets rules for discounted state-held grain

The agriculture ministry said its revised grain management rules will set conditions for discounted state-held grain to reach welfare recipients, near-poor households and organizations serving regular free meals.

The partial revision implements changes to the Grain Management Act aimed at stabilizing grain supply and demand. The government said it prepared the subordinate rules after commissioning research and consulting agricultural groups.

Organizations must have supplied free meals at least twice a week for three continuous months and received no national or local support for grain purchases. Discount rates and per-person allotments will reflect recipients' income, the purpose of support and supply conditions. Applicants and facilities must apply monthly.

The rules take effect Aug. 27. Government action is required when rice overproduction reaches 3 percent to 5 percent of output, or when the July-to-September average rice price is 5 percent to 8 percent below a three-year average calculated after excluding the highest and lowest prices from the previous five years. Measures can include rice purchases.

The ministry will establish a Grain Supply and Demand Management Committee with government officials, representatives of producer, distribution and consumer groups, and experts. Under the new system, the government will implement supply-stabilization measures after committee deliberation when supply and demand instability is unavoidable.

Supply plans will cover wheat and soybeans, and the ministry must publish plans in the Official Gazette. The decree also defines high-quality grains as those with organic, pesticide-free or good agricultural practice certification, or geographical indications.