South Korea will push to double its rice-based processed food market by 2012 to reduce foreign grain imports and help local farmers, the government said Tuesday.

 

The plan calls for the size of the market to be expanded to 2 trillion won ($1US.3 billion) in the target year from 1 trillion won in 2007, the Ministry for Food, Agriculture, Forestry and Fisheries said.

 

It said the expansion will push the total amount of rice used to make processed food from 220,000 tons to 440,000 tons, with grain imports being reduced by around 55.0 billion won on a annual basis.

 

"The plan is designed to help balance out supply and demand that have been hurt by a sharp drop in domestic consumption," said Lee Chang-buhm, head of the ministry's food policy bureau.

 

In 2007, rice consumption dropped to 3.79 million tons from 4.15 million tons in 2002.

 

He added that greater consumption of rice could help cut state spending needed to maintain stockpiles of unsold rice, create 3,200 new jobs and help manufacturers that currently use imported wheat in many of its products. Wheat prices have soared in recent years which have hurt profit levels of companies.

 

South Korea is self-sufficient in rice but imports 99.9 per cent of its wheat from abroad.

 

To increase market size, the ministry plans to sell rice it holds in stock on par with international wheat prices and support development and marketing of rice-base liquor, noodles and cookies that use large quantities of the grain. It will also increase instant cooked rice products and fuel demand for ddukboki, a spicy rice stick, that is gaining favor with both local consumers and foreigners.