MEASURES AGAINST PLUMMETING RICE PRICE

[Anchor Lead]

Prices of rice have plummeted to the lowest level in 45 years to farmers' demise. The government and the ruling party have vowed to purchase more rice than the excess amount by the end of the year. The rival parties are at odds over the revision of the law on mandatory purchase of rice.

[Pkg]

As of September, the producer price of a 20kg sack of rice was 40,000 won. That's down around 25 percent from the corresponding period last year and the lowest level in 45 years. Authorities have laid out countermeasures. The estimated volume of excess rice this year combined with last year's inventories reaches 350,000 tons. The government and the ruling party will purchase 450,000 tons by the end of the year. The amount of rice purchased annually for the public reserve stock is also to be expanded from last year. The combined volume of government-purchased rice and reserves reaches 900,000 tons, a quarter of this year's estimated rice production. It will be the first time in five years the government will buy rice during the harvest season. It will also be the largest volume bought since the public reserve system was introduced in 2005. The estimated cost is one trillion won. The government believes the purchased volume is large enough to help rice prices recover to their appropriate level.

[Soundbite] Kim In-jung(Vice minister of Agriculture, Food and Rural Affairs) : "It's the largest harvest-season volume since the rice public reserve system was introduced. It's large enough to improve the situation in the rice market."

Rival parties have shown contrasting responses to the government's plan. The Democratic Party, which has been pushing for the revision of the Grain Management Act stipulating the mandatory purchase of excess rice, blasted the plan as a temporary remedy. The DP says the government should devise more fundamental measures to stabilize rice prices, as the same situation is going to happen in the future. The government and the ruling party are opposed to the law's revision, claiming there will be an oversupply of rice and a financial burden.

[Soundbite] Chung Jin-suk(PPP Emergency Committee chief) : "The opposition party is pushing for the amendment of the Grain Management Act by capitalizing on its parliamentary majority using populism and demagogy."

Rival parties have pledged to reach a compromise, but if they fail to do so, the DP could pass the bill on its own.