Before the decision, the minister submitted the estimated purchase price to the Rice Price Council for consultation. The Council supported the MAFF estimate in principle, paving the way for the first purchase price reduction since 1991. The government purchases rice from producers who implement production adjustments or from entities to whom these producers have consigned the sale of their rice.
Rice purchased by the government is stockpiled to ensure stability of supply, demand and price.
Also on November 28, MAFF announced the Guideline on Production and Shipment of Rice. Demand for table rice will be between 9,750,000 and 9,850,000 tons, while demand for rice for processing and other uses will be between 900,000 and 950,000 tons. In the 1998 rice year, the total supply will be between 13,400,000 and 13,500,000 tons, of which 9,780,000 tons will be domestically produced, assuming normal weather conditions. Demand for table rice will be between 9,700,000 and 9,800,000 tons, while that for processing and other uses will be between 750,000 and 800,000 ton, leaving a stockpile of between 2,800,000 and 2,900,000 tons at the end of October 1998. The 29th annual meeting of the Japan-Korea Technical Cooperation Committee for Agriculture, Forestry and Fisheries was held November 5 and 6 in Tokyo.